By Jennifer Chiou
New York, Aug. 13 - JPMorgan Chase & Co. priced $8,377,270 of contingent income autocallable securities due Aug. 12, 2016 with step-up redemption threshold level linked to Starbucks Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon of 2.1625%, equivalent to 8.65% per year, if Starbucks stock closes at or above the 80% downside threshold level on the determination date for that quarter.
If the stock closes at or above the initial share price on any of the first 11 quarterly determination dates, the notes will be redeemed at par of $10 plus the contingent payment. The redemption threshold level will be 105% of the initial stock price for the first four determination dates, 110% of the initial stock price for the next four dates and 115% of the initial stock price for the final three dates.
If the notes are not called, the payout at maturity will be par plus the contingent payment unless the stock finishes below the 80% downside threshold level, in which case the payout will be a number of Starbucks shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent.
J.P. Morgan Securities. LLC is the agent. Distribution is through Morgan Stanley Smith Barney LLC.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Contingent income autocallable securities with step-up redemption threshold level
|
| Underlying stock: | Starbucks Corp (Symbol: SBUX)
|
| Amount: | $8,377,270
|
| Maturity: | Aug. 12, 2016
|
| Contingent coupon: | 2.1625% (8.65% per year), payable quarterly if Starbucks stock closes at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus contingent payment; otherwise, 0.13736 Starbucks shares or, at issuer's option, cash amount equal to value of those shares
|
| Call: | At par plus contingent payment if closing share price is greater than or equal to redemption threshold level on any of first 11 quarterly determination dates; redemption threshold level is 105% of the initial stock price for the first four determination dates, 110% of the initial stock price for the next four dates and 115% of the initial stock price for the final three dates
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| Initial share price: | $72.80
|
| Downside threshold level: | $58.24, 80% of initial share price
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| Pricing date: | Aug. 9
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| Settlement date: | Aug. 14
|
| Agent: | J.P. Morgan Securities LLC
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| Fees: | 2.25%
|
| Cusip: | 48126H621
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