By Jennifer Chiou
New York, Jan. 22 - JPMorgan Chase & Co. priced $4,316,000 of autocallable contingent interest notes due Feb. 4, 2015 linked to Valeant Pharmaceuticals International, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a 5.1% coupon (equivalent to 20.4% a year) if Valeant shares close at or above the barrier price on the review date for that quarter. The barrier price is 75% of the initial share price.
The notes will be called automatically at par plus the 5.1% contingent coupon if Valeant shares close at or above the initial share price on any quarterly review date other than the final review date.
If the notes have not been called and the final share price is greater than or equal to the barrier price, the payout at maturity will be par plus the 5.1% contingent coupon. If the final share price is less than the barrier price, investors will be exposed to the decline from the initial share price.
J.P. Morgan Securities LLC is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Autocallable contingent interest notes
|
| Underlying shares: | Valeant Pharmaceuticals International, Inc. (Symbol: VRX)
|
| Amount: | $4,316,000
|
| Maturity: | Feb. 4, 2015
|
| Coupon: | 5.1% (equivalent to 20.4% per year) payable quarterly if Valeant stock closes at or above barrier price on review date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon unless Valeant shares finish below barrier price, in which case investors share fully in losses
|
| Call: | Automatically at par plus contingent coupon if Valeant shares close at or above initial share price on any quarterly review date other than final review date
|
| Initial share price: | $137.93
|
| Barrier price: | $103.4475, 75% of initial share price
|
| Pricing date: | Jan. 17
|
| Settlement date: | Jan. 23
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 48126NW94
|
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