By Jennifer Chiou
New York, Sept. 25 – JPMorgan Chase & Co. updated the contingent coupon to be paid for its $2.7 million of contingent coupon callable yield notes due Sept. 15, 2016 linked to the common stock of Tesoro Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will now pay a coupon at a rate of 10.15% per year if Tesoro stock closes at or above the barrier level, 70% of the initial share price, on the observation date for that quarter. The coupon was originally set at 9.8%.
If the final share price is greater than or equal to the 70% knock-in level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the share price decline.
The notes are callable at par on any interest payment date.
J.P. Morgan Securities LLC is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Contingent coupon callable yield notes
|
| Underlying stock: | Tesoro Corp. (Symbol: TSO)
|
| Amount: | $2,696,000
|
| Maturity: | Sept. 15, 2016
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| Coupon: | 10.15%, payable quarterly if stock closes at or above barrier price on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If final share price is greater than or equal to knock-in price, par; otherwise, full exposure to share price decline
|
| Call option: | At par on any interest payment date
|
| Initial price: | $61.50
|
| Barrier/knock-in price: | $43.05, 70% of initial price
|
| Pricing date: | Sept. 12
|
| Settlement date: | Sept. 17
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 1.75%
|
| Cusip: | 48127DA24
|
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