JPMorgan plans contingent income autocallables on Tesla Motors

By Toni Weeks

San Luis Obispo, Calif., July 6 – JPMorgan Chase & Co. plans to price contingent income autocallable securities due July 13, 2018 linked to Tesla Motors, Inc. shares, according to an FWP with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of at least 13% if the shares close at or above the 75% downside threshold level on the observation date for that quarter.

The notes will be called at par plus the contingent coupon if the stock closes at or above the initial level on any determination date other than the final date.

The payout at maturity will be par plus the final coupon unless the shares finish below the 75% downside threshold level, in which case investors will receive a number of Tesla Motors shares equal to $10 divided by the initial price or, at the issuer’s option, the cash equivalent.

The notes (Cusip: 48127X153) will price July 10.

J.P. Morgan Securities LLC is the agent with Morgan Stanley Wealth Management as distributor.

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