JPMorgan plans contingent interest autocallables linked to two ETFs

By Tali Rackner

Minneapolis, Aug. 14 – JPMorgan Chase Financial Co. LLC plans to price autocallable contingent interest notes due Aug. 20, 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 month, the notes will pay a contingent coupon if each fund closes at or above its interest barrier, 60% of its initial level, on the review date for that month. The contingent coupon rate is expected to be at least 13% per year and will be set at pricing.

The notes will be automatically called at par plus the contingent coupon if each fund closes at or above its initial level on any quarterly review date.

If the notes have not been called, the payout at maturity will be par unless any ETF finishes below its 60% trigger value, in which case investors will lose 1% for every 1% decline of the lesser-performing fund beyond 40%.

J.P. Morgan Securities LLC is the agent.

The notes will price on Aug. 16 and settle on Aug. 21.

The Cusip number is 46647MN74.

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