By Jennifer Chiou
New York, Dec. 16 - JPMorgan Chase & Co. priced an additional $5.5 million principal amount of 0% daily liquidity notes due Aug. 31, 2016 linked to the S&P GSCI Gold Index Total Return, according to a 424B2 filing with the Securities and Exchange Commission.
The company priced the original $15 million of the notes on Aug. 25, 2011. The latest reopened notes priced on Dec. 12, bringing the total issue amount to $65.5 million.
As of Dec. 12, the issuer has sold $59.6 million aggregate principal amount of the notes, of which $52,747,000 has been previously repurchased by JPMorgan. Accordingly, $7,253,000 aggregate principal amount of notes remains outstanding, with $400,000 of notes held by the agent, J.P. Morgan Securities LLC.
After settlement of the additional notes, $12,753,000 aggregate principal amount of notes will be outstanding, excluding notes that have been repurchased and are expected to be retired, with $5.9 million held by JPMorgan.
The agent will offer the additional notes from time to time at the relevant indicative note value, which was $677.894 per $1,000 principal amount note as of Dec. 12.
The payout at maturity will be the indicative value of the notes, which was par on the inception date. On each subsequent trading day, it equals the indicative note value on the preceding day multiplied by the index factor and minus the investor fee. The indicative note value cannot be less than zero.
The index factor equals the index closing level on that day divided by the index closing level on the preceding day.
On any trading day, the investor fee equals 0.4% of the indicative note value on the preceding day multiplied by the quotient of the number of calendar days from the preceding trading day to the current trading day divided by 360.
The notes are putable at any time, subject to the investor fee, and are callable beginning Aug. 30, 2012.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Daily liquidity notes
|
| Underlying index: | S&P GSCI Gold Index Total Return
|
| Amount priced: | $65.5 million, increased from original $15 million
|
| Amount outstanding: | $12,753,000 (following settlement of reopened notes)
|
| Maturity: | Aug. 31, 2016
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Cash amount equal to indicative note value on Aug. 26, 2016; on any day, indicative note value equals indicative note value on preceding day plus index return less investor fee
|
| Put option: | At any time, subject to fee
|
| Call option: | Beginning Aug. 30, 2012
|
| Initial index level: | 972.8832
|
| Inception date: | Aug. 25, 2011
|
| Pricing dates: | Aug. 25 for original $15 million; Dec. 12 for latest $5.5 million
|
| Settlement dates: | Aug. 30 for initial tranche; Dec. 17 for latest add-on
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | None
|
| Cusip: | 48125XQ82
|
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