JPMorgan plans contingent interest notes linked to oil, biotech ETFs

By Angela McDaniels

Tacoma, Wash., July 3 – JPMorgan Chase Financial Co. LLC plans to price callable contingent interest notes due July 28, 2020 linked to the lesser performing of the SPDR S&P Biotech exchange-traded fund and the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be guaranteed by JPMorgan Chase & Co.

Each quarter, the notes will pay a contingent coupon if each ETF closes at or above its trigger value, 55% of its initial share price, on the review date for that quarter. The contingent coupon rate is expected to be 10.25% to 11.25% per year and will be set at pricing.

The notes will be callable at par on any interest payment date other than the final interest payment date.

If the notes have not been called, the payout at maturity will be par unless either ETF finishes below its trigger value, in which case investors will be fully exposed to the decline of the lesser-performing ETF.

J.P. Morgan Securities LLC is the agent.

The notes will price July 21.

The Cusip number is 46647MVU4.

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