By Toni Weeks
San Luis Obispo, Calif., Oct. 1 - JPMorgan Chase & Co. priced $1.15 million of contingent coupon autocallable yield notes due Oct. 2, 2014 linked to the common stock of Tesoro Corp., according to a 424B2 filing with the Securities and Exchange Commission.
If Tesoro stock closes at or above the coupon barrier level, 65% of the initial share price, on a monthly observation date, the notes will pay a contingent payment of 1% for that month. The amount is equivalent to 12% per year.
If the closing share price is greater than or equal to the initial share price on any monthly observation date other than the first and final observation dates, the notes will be automatically redeemed at par plus the contingent payment.
If the notes are not called and the final share price is greater than or equal to the 65% trigger level, the payout at maturity will be par plus the contingent payment. Otherwise, investors will be fully exposed to the decline in the stock price from the initial price.
J.P. Morgan Securities LLC is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Contingent coupon autocallable yield notes
|
| Underlying stock: | Tesoro Corp. (Symbol: TSO)
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| Amount: | $1.15 million
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| Maturity: | Oct. 2, 2014
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| Contingent payment: | 12% per year, payable monthly if Tesoro stock closes at or above coupon barrier level on observation date for that month
|
| Price: | Par
|
| Payout at maturity: | If final share price is greater than or equal to 65% trigger level, par plus contingent payment; otherwise, full exposure to decline in stock price from initial price
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| Call: | Automatically at par plus contingent payment if closing share price is greater than or equal to initial share price on any observation date other than first and final observation dates
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| Initial share price: | $44.53
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| Coupon barrier level: | $28.9445, 65% of initial share price
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| Pricing date: | Sept. 27
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| Settlement date: | Oct. 3
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| Agent: | J.P. Morgan Securities LLC
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| Fees: | 1%
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| Cusip: | 48126NWC7
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