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

By Jennifer Chiou

New York, Feb. 7 - JPMorgan Chase Bank, NA plans to price callable variable-rate range accrual certificates of deposit due Feb. 21, 2029 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 850. 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. In years two through 15, it will be (a) two times (b) the strike rate minus six-month Libor.

The strike rate will be 5% in years two through five, 5.5% in years six through 10 and 6% in years 11 through 15.

The interest rate cap will be 10% in years one through five, 11% in years six through 10 and 12% in years 11 through 15.

The payout at maturity will be par.

Beginning on Feb. 21, 2015, the CDs will be callable at par on any interest payment date.

The CDs (Cusip: 48125TFQ3) are expected to price on Feb. 18 and settle on Feb. 21.

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

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