JPMorgan plans to price variable-rate range accrual CDs linked to six-month Libor, S&P 500

By Angela McDaniels

Tacoma, Wash., July 1 - JPMorgan Chase Bank, NA plans to price callable variable-rate range accrual certificates of deposit due July 22, 2026 linked to six-month Libor and the S&P 500 index, according to a term sheet.

The coupon will be 8% for the first year. After that, the rate will equal (a) 700 basis points minus six-month Libor, subject to a minimum rate of 2.5% and a maximum rate of 7%, multiplied by (b) the proportion of days on which index closes at or above 975. Interest is payable quarterly.

The payout at maturity will be par.

The CDs will be callable at par on any interest payment date from July 22, 2012 onward.

The CDs (Cusip: 48123YE28) are expected to settle on July 22.

J.P. Morgan Securities LLC is the underwriter. Advisors Asset Management, Inc. is the distributor.

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