Published on 2/19/2016 in the Prospect News Structured Products Daily.
New Issue: JPMorgan prices $2 million contingent buffered autocallables linked to energy stocks
By Angela McDaniels
Tacoma, Wash., Feb. 19 – JPMorgan Chase & Co. priced $2 million of 0% autocallable contingent buffered return enhanced notes due Feb. 22, 2019 linked to a basket of nine stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The equally weighted basket includes Antero Resources Corp., Cabot Oil & Gas Corp., Chevron Corp., Exxon Mobil Corp., Gulfport Energy Corp., Occidental Petroleum Corp., Range Resources Corp., Southwestern Energy Co. and Valero Energy Corp.
The notes will be automatically called at par plus a call premium of 16% per year if the basket closes at or above the call value on either annual review date. The call value is 90% of the initial basket level on Feb. 17, 2017 and 100% of the initial basket level on Feb. 20, 2018.
If the final basket level is greater than the initial basket level, the payout at maturity will be par plus 1.5 times the basket return. If the basket falls by up to 50%, the payout will be par. If the basket falls by more than 50%, investors will be fully exposed to the basket’s decline from its initial level.
J.P. Morgan Securities LLC is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Autocallable contingent buffered return enhanced notes
|
| Underlying stocks: | Antero Resources Corp., Cabot Oil & Gas Corp., Chevron Corp., Exxon Mobil Corp., Gulfport Energy Corp., Occidental Petroleum Corp., Range Resources Corp., Southwestern Energy Co. and Valero Energy Corp., equally weighted
|
| Amount: | $2 million
|
| Maturity: | Feb. 22, 2019
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If final basket level is greater than initial basket level, par plus 1.5 times basket return; if basket falls by up to 50%, par; if basket falls by more than 50%, full exposure to basket’s decline from initial level
|
| Call: | Automatically called at par plus call premium of 16% per year if basket closes at or above call value on either annual review date; call value is 90% of initial basket level on Feb. 17, 2017 and 100% of initial basket level on Feb. 20, 2018
|
| Pricing date: | Feb. 17
|
| Settlement date: | Feb. 22
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 48128GNS5
|
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