JPMorgan plans callable interest rate spread notes linked to CMS rates

By Marisa Wong

Madison, Wis., Aug. 5 – JPMorgan Chase & Co. plans to price callable interest rate spread notes due Aug. 29, 2029 linked to the 10-year U.S. dollar Constant Maturity Swap rate and the two-year CMS rate, according to an FWP filing with the Securities and Exchange Commission.

Interest will be fixed at 8% for the first year. After that, it will accrue at 5 times the spread of the 10-year CMS rate over the two-year CMS rate minus 25 basis points, up to a maximum rate of 10%. Interest is payable quarterly and cannot be less than zero.

The payout at maturity will be par plus accrued interest.

The notes are callable on any quarterly call date beginning Aug. 29, 2015.

J.P. Morgan Securities LLC is the agent.

The notes are expected to price Aug. 26.

The Cusip number is 48126N7K7.

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