By Toni Weeks
San Diego, Jan. 23 - JPMorgan Chase & Co. priced $4.02 million of autocallable contingent interest notes due Feb. 5, 2014 linked to the common stock of Starbucks Corp., according to a 424B2 filing with the Securities and Exchange Commission.
If Starbucks shares close at or above the barrier level, 80% of the initial share price, on a quarterly review date, the notes will pay a 3.07% coupon that interest period, which is equivalent to 12.28% per year. If Starbucks shares close below the barrier level, no coupon will be paid for that interest period.
If Starbucks shares close at or above the initial share price on any of the first three quarterly review dates, the notes will be automatically called at par plus the 3.07% contingent coupon.
If the notes have not been called and the final share price is greater than or equal to the barrier level, the payout at maturity will be par plus the contingent coupon. If the final share price is less than the barrier level, investors will be exposed to the decline from the initial price.
J.P. Morgan Securities LLC is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Autocallable contingent interest notes
|
| Underlying stock: | Starbucks Corp. (Nasdaq: SBUX)
|
| Amount: | $4,015,000
|
| Maturity: | Feb. 5, 2014
|
| Coupon: | 12.28% per year, payable quarterly if closing price of Starbucks stock is equal to or greater than barrier price; otherwise, no coupon for that interest period
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon unless Starbucks shares finish below barrier price, in which case investors share fully in losses
|
| Call: | At par plus contingent coupon if closing share price on May 2, Aug. 1, 2013 or Oct. 31, 2013 is greater than or equal to initial share price
|
| Initial share price: | $54.81
|
| Barrier price: | $43.848, 80% of initial share price
|
| Pricing date: | Jan. 18
|
| Settlement date: | Jan. 24
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 48126DTP4
|
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