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

By Angela McDaniels

Tacoma, Wash., Aug. 17 - JPMorgan Chase Bank, NA plans to price callable variable-rate range accrual certificates of deposit due Aug. 31, 2027 linked to six-month Libor and the S&P 500 index, according to a term sheet.

The interest rate will be the interest factor multiplied by the proportion of days on which the index closes at or above the minimum index level, 80% of the initial index level, subject to a minimum interest rate of zero and a maximum interest rate. Interest will be payable quarterly.

The interest factor will be 7.25% for the first year. From Aug. 31, 2013 up to but excluding Aug. 31, 2022, it will be (a) 1.1 times (b) 5.5% per year minus six-month Libor. From Aug. 31, 2022 through maturity, it will be (a) 1.1 times (b) 6% per year minus six-month Libor.

The maximum interest rate will be 7.25% for the first year, 6.05% per year from Aug. 31, 2013 up to but excluding Aug. 31, 2022 and 6.6% per year from Aug. 31, 2022 through maturity.

The payout at maturity will be par.

Beginning Aug. 31, 2013, the CDs will be callable at par on any interest payment date.

The CDs are expected to price Aug. 28 and settle Aug. 31.

J.P. Morgan Securities LLC is the agent.

The Cusip number is 48124JHT8.

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