By Toni Weeks
San Diego, Dec. 31 - JPMorgan Chase & Co. priced $2 million of autocallable contingent interest notes due Jan. 15, 2014 linked to Sears Holdings Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If Sears shares close at or above the 50% barrier level on any semiannual review date, the notes will pay a coupon at an annualized rate of 16.05% for that interest period.
If Sears shares close at or above the initial share price on the first review date, the notes will be called at par plus the coupon.
If the notes have not been called, the payout at maturity will be par plus the coupon unless the stock finishes below the barrier level, in which case investors will be fully exposed to the decline from the initial share price.
J.P. Morgan Securities LLC is the underwriter.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Autocallable contingent interest notes
|
| Underlying stock: | Sears Holdings Corp. (Symbol: SHLD)
|
| Amount: | $2 million
|
| Maturity: | Jan. 15, 2014
|
| Coupon: | 16.05% annualized if the closing price of Sears shares is at or above barrier price on the two review dates, which are July 11, 2013 and Jan. 10, 2014; interest is payable semiannually
|
| Price: | Par
|
| Payout at maturity: | Par in cash unless Sears shares finish below barrier price, in which case investors share in losses
|
| Call: | At par plus contingent coupon if shares close at or above initial price on July 11, 2013
|
| Initial share price: | $39.34
|
| Barrier price: | $19.67, 50% of initial share price
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| Pricing date: | Dec. 27
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| Settlement date: | Dec. 31
|
| Underwriter: | J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 48126DQW2
|
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