JPMorgan eyes contingent interest autocallables on SPDR S&P Oil & Gas

By Devika Patel

Knoxville, Tenn., Oct. 5 – JPMorgan Chase Financial Co. LLC plans to price autocallable contingent interest notes due Jan. 15, 2020 linked to 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 the fund closes at or above its interest barrier, 65% of its initial level, on the review date for that quarter. The contingent coupon rate is expected to be at least 6.65% per year and will be set at pricing.

Beginning April 10, 2019, the notes will be automatically called at par plus the contingent coupon if the fund closes at or above its initial level on any quarterly review date other than the final one.

If the notes have not been called, the payout at maturity will be par unless the fund finishes below its initial level and closes below its 65% trigger value during the life of the notes, in which case investors will lose 1% for every 1% that the fund finishes below its initial level.

J.P. Morgan Securities LLC is the agent.

The notes (Cusip: 48130U5A9) will price on Oct. 10 and settle on Oct. 15.

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