By Sarah Lizee
Olympia, Wash., Oct. 17 – JPMorgan Chase Financial Co. LLC priced $4.1 million of contingent income autocallable securities due Oct. 15, 2020 linked to the common stocks of Kinder Morgan, Inc., Williams Cos, Inc. and Targa Resources Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by JPMorgan Chase & Co.
If all stocks close at or above the downside threshold level, 70% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 22%.
The notes will be called at par of $10 plus the contingent coupon if all stocks close at or above the initial share price on any quarterly determination date other than the final determination date.
If the final share price of each stock is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price of the laggard stock is less than the initial share price.
J.P. Morgan Securities LLC is the agent. Morgan Stanley Wealth Management is handling distribution.
| Issuer: | JPMorgan Chase Financial Co. LLC
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| Guarantor: | JPMorgan Chase & Co.
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | Kinder Morgan, Inc., Williams Cos, Inc. and Targa Resources Corp.
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| Amount: | $4.1 million
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| Maturity: | Oct. 15, 2020
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| Coupon: | 22% per year, payable quarterly if both stocks close at or above downside threshold level on determination date for that quarter
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| Price: | Par of $10.00
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| Payout at maturity: | If final share price of laggard stock is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that final share price of laggard stock is less than initial share price
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| Call: | At par plus contingent coupon if both stocks close at or above initial share price on any quarterly determination date other than final determination date
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| Initial share price: | $20.23 for Kinder Morgan, $23.09 for Williams, $39.46 for Targa
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| Downside threshold: | $14.161 for Kinder Morgan, $16.163 for Williams, $27.622 for Targa, 70% of initial share price
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| Pricing date: | Oct. 11
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| Settlement date: | Oct. 17
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| Agent: | J.P. Morgan Securities LLC
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| Distribution: | Morgan Stanley Wealth Management
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| Fees: | 1.75%
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| Cusip: | 48132G369
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