By Jennifer Chiou
New York, Aug. 16 - JPMorgan Chase & Co. priced $1 million of autocallable contingent interest notes due Sept. 4, 2014 linked to the ordinary shares of Tesla Motors, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If Tesla Motors shares close at or above the barrier level on a quarterly review date, the notes will pay a 5.6625% coupon that interest period, which is equivalent to 22.65% per year. If Tesla Motors shares close below the barrier level, no coupon will be paid that interest period.
The interest barrier/trigger level is 60% of the initial level.
The notes will be called automatically at par plus the 5.6625% contingent coupon if Tesla Motors shares close at or above the initial price on any quarterly review date: Nov. 27, 2013, Feb. 27, 2014 or May 29, 2014.
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 5.6625% 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: | Tesla Motors, Inc. (Symbol: TSLA)
|
| Amount: | $1 million
|
| Maturity: | Sept. 4, 2014
|
| Coupon: | 5.6625% (equivalent to 22.65% per year) payable for each quarter that Tesla Motors stock closes at or above barrier price on review date for that interest period
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon unless Tesla Motors shares finish below barrier price, in which case investors share fully in losses
|
| Call: | Automatically at par plus contingent coupon if Tesla Motors shares close at or above initial price on Nov. 27, 2013, Feb. 27, 2014 or May 29, 2014
|
| Initial price: | $139.36
|
| Barrier/trigger price: | $83.616, 60% of initial price
|
| Pricing date: | Aug. 14
|
| Settlement date: | Aug. 19
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 48126NNT0
|
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