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

By Angela McDaniels

Tacoma, Wash., Jan. 9 - JPMorgan Chase Bank, NA plans to price callable variable-rate range accrual certificates of deposit due Jan. 18, 2028 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's closing level is at least 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. In years two through 10, it will be (a) 1.1 times (b) 5.5% per year minus six-month Libor. In years 11 through 15, it will be (a) 1.1 times (b) 6% per year minus six-month Libor.

The maximum interest rate will be 7.25% in year one, 6.05% in years two through 10 and 6.6% in years 11 through 15.

The payout at maturity will be par plus the last coupon payment, if any.

Beginning Jan. 18, 2014, the CDs will be callable at par on any interest payment date.

The CDs are expected to price Jan. 15 and settle Jan. 18.

J.P. Morgan Securities LLC is the agent.

The Cusip number is 48124JRS9.

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