By Angela McDaniels
Tacoma, Wash., Feb. 12 - JPMorgan Chase & Co. priced $1.5 million of autocallable contingent interest notes due Feb. 26, 2014 linked to the common stock of Tenneco Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If Tenneco shares close at or above the barrier level, 70% of the initial share price, on a quarterly review date, the notes will pay a 2.125% coupon that quarter, which is equivalent to 8.5% per year. If Tenneco shares close below the barrier level, no coupon will be paid that quarter.
The notes will be automatically called at par plus the 2.125% contingent coupon if Tenneco shares close at or above the initial share price on May 23, 2013, Aug. 22, 2013 or Nov. 21, 2013.
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 share price.
J.P. Morgan Securities LLC is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Autocallable contingent interest notes
|
| Underlying stock: | Tenneco Inc. (NYSE: TEN)
|
| Amount: | $1.5 million
|
| Maturity: | Feb. 26, 2014
|
| Coupon: | 8.5% per year, payable quarterly if closing price of Tenneco 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 Tenneco shares finish below barrier price, in which case investors share fully in losses
|
| Call: | Automatically at par plus contingent coupon if Tenneco shares close at or above initial share price on May 23, 2013, Aug. 22, 2013 or Nov. 21, 2013
|
| Initial share price: | $37.48
|
| Barrier price: | $26.236, 70% of initial share price
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| Pricing date: | Feb. 8
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| Settlement date: | Feb. 13
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 48126DWX3
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