By Susanna Moon
Chicago, Aug. 27 – JPMorgan Chase & Co. priced $1.21 million of contingent income autocallable securities due Aug. 25, 2017 linked to Baker Hughes, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon of 2.0625% if Baker Hughes stock closes at or above the 80% barrier level on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above the redemption threshold on any quarterly determination date other than the final date.
The redemption threshold will be 105% of the initial stock price for the first four determination dates, stepping up to 110% of the initial stock price for the next four determination dates and to 115% of the initial stock price for the final three determination dates.
If the notes are not called and Baker Hughes stock finishes at or above the barrier level, the payout at maturity will be par plus the contingent payment.
Otherwise, investors will receive a number of shares of Baker Hughes stock equal to $10 divided by the initial share price or, at the issuer's option, the cash value of those shares.
J.P. Morgan Securities LLC is the agent with Morgan Stanley Wealth Management as dealer.
Issuer: | JPMorgan Chase & Co.
|
Issue: | Contingent income autocallable securities
|
Underlying stock: | Baker Hughes, Inc. (Symbol: BHI)
|
Amount: | $1,211,000
|
Maturity: | Aug. 25, 2017
|
Contingent coupon: | 2.0625% for each quarter that Baker Hughes stock closes at or above barrier level on determination date for that quarter
|
Price: | Par
|
Payout at maturity: | If stock finishes at or above barrier level, par plus contingent payment; otherwise 0.14689 Baker Hughes shares
|
Call: | At par plus contingent payment if stock closes at or above redemption level on any quarterly determination date other than final one; redemption threshold will be 105% of the initial stock price for the first four determination dates, stepping up to 110% of the initial stock price for the next four determination dates and to 115% of the initial stock price for the final three determination dates
|
Initial share price: | $68.08
|
Barrier level: | $54.464, 80% of initial share price
|
Pricing date: | Aug. 22
|
Settlement date: | Aug. 27
|
Agent: | J.P. Morgan Securities LLC
|
Distribution: | Morgan Stanley Wealth Management
|
Fees: | 2.25%
|
Cusip: | 48127H828
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.