JPMorgan plans variable-rate range accrual CDs tied to Libor, Russell

By Marisa Wong

Madison, Wis., Dec. 20 - JPMorgan Chase Bank, NA plans to price callable variable-rate range accrual certificates of deposit due Dec. 30, 2028 linked to six-month Libor and the Russell 2000 index, according to a term sheet.

The interest rate will equal the interest factor multiplied by the proportion of days on which the index closes at or above 785. Interest will be subject to a floor of zero and a cap. It will be payable quarterly.

The interest factor will be 10% in year one. After that, it will be (a) two times (b) the strike rate minus six-month Libor. The strike rate will be 5.5% in years two through 10 and 6% in years 11 through 15.

The interest rate cap will be 10% for the first year, 11% in years two through 10 and 12% in years 11 through 15.

The payout at maturity will be par.

Beginning Dec. 30, 2014, the CDs will be callable at par on any interest payment date.

J.P. Morgan Securities LLC is the agent. Incapital LLC is distributor.

The CDs are expected to price Dec. 23 and settle Dec. 30.

The Cusip number is 48125TCJ2.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.