Published on 6/10/2022 in the Prospect News Structured Products Daily.
New Issue: JPMorgan sells $5 million autocallable contingent interest notes on three tech stocks
By William Gullotti
Buffalo, N.Y., June 10 – JPMorgan Chase Financial Co. LLC sold $5 million of autocallable contingent interest notes due June 4, 2026 linked to the performance of the stocks of Tesla, Inc., Amazon.com, Inc. and Apple Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by JPMorgan Chase & Co.
The notes will pay a contingent monthly coupon at an annual rate of 20.3% if each stock closes at or above its interest barrier level, 70% of its initial level, on the corresponding review date. Previously unpaid coupons, if any, will be automatically included whenever a coupon is paid.
The notes will be automatically called at par plus the coupon if each stock closes at or above its initial level on any quarterly call date after one year.
If the notes are not called and each stock finishes at or above its interest barrier, the payout at maturity will be par plus all unpaid coupons.
If the worst performer finishes below its interest barrier but at or above the 50% trigger value, the payout will be par. Otherwise, investors will lose 1% for each 1% decline of the worst performing stock from its initial level.
J.P. Morgan Securities LLC is the agent.
| Issuer: | JPMorgan Chase Financial Co. LLC
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| Guarantor: | JPMorgan Chase & Co.
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| Issue: | Autocallable contingent interest notes
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| Underlying stocks: | Tesla, Inc., Amazon.com, Inc., Apple Inc.
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| Amount: | $5 million
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| Maturity: | June 4, 2026
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| Coupon: | 20.3% annualized, payable monthly if each underlying stock closes at or above interest barrier level on relevant observation date; coupon payment events will automatically include any previously unpaid coupons
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above interest barrier, par plus all unpaid coupons; if worst performer finishes below interest barrier but at or above trigger value, par; otherwise, full exposure to decline of worst performer from initial level
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| Call option: | Automatically at par plus coupon if each stock closes at or above initial level on any quarterly call date after one year
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| Initial levels: | $758.26 for Tesla, $2,404.19 for Amazon, $148.84 for Apple
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| Interest barriers: | $530.782 for Tesla, $1,682.933 for Amazon, $104.188 for Apple; 70% of initial levels
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| Trigger values: | $379.13 for Tesla, $1,202.095 for Amazon, $74.42 for Apple; 50% of initial levels
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| Strike date: | May 31
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| Pricing date: | June 2
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| Settlement date: | June 7
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| Agent: | J.P. Morgan Securities LLC
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| Fees: | 2%
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| Cusip: | 48133GTT0
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