JPMorgan plans contingent absolute return notes linked to Southwestern

By Angela McDaniels

Tacoma, Wash., Oct. 27 – JPMorgan Chase & Co. plans to price 0% contingent absolute return autocallable optimization securities due Nov. 6, 2015 linked to the common stock of Southwestern Energy Co., according to an FWP filing with the Securities and Exchange Commission.

The notes will be called at par of $10 plus an annualized call premium of 8% to 10.6% if Southwestern Energy stock closes at or above the initial share price on any quarterly observation date. The exact call premium will be set at pricing.

If the notes are not called and the final share price is greater than or equal to the trigger price, 75% of the initial share price, the payout at maturity will be par plus the absolute value of the stock return. Otherwise, investors will be fully exposed to the stock decline.

UBS Financial Services Inc. and J.P. Morgan Securities LLC are the agents.

The notes are expected to price Oct. 29 and settle Oct. 31.

The Cusip number is 48127H141.

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