JPMorgan plans 15-year callable variable-rate CDs on six-month Libor

By Toni Weeks

San Luis Obispo, Calif., Oct. 9 - JPMorgan Chase Bank, NA plans to price callable variable-rate certificates of deposit due Oct. 18, 2028 linked to six-month Libor, according to a term sheet.

The coupon will be 8.5% for the first year. After that, interest will be (i) 125% times (ii) the applicable strike rate minus six-month Libor. The strike rate will be 5.5% beginning Oct. 18, 2014, stepping up to 6% on Oct. 18, 2023. The coupon will be subject to a minimum interest rate of 0% and a maximum interest rate, which will be 6.875% beginning Oct. 18, 2014, stepping up to 7.5% on Oct. 18, 2023. Interest is payable quarterly.

The payout at maturity will be par.

The CDs will be callable at par in January, April, July and October of each year beginning Oct. 18, 2014.

The CDs (Cusip: 48124J6A1) will price Oct. 15 and settle Oct. 18.

J.P. Morgan Securities LLC is the agent.

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