By Jennifer Chiou
New York, Oct. 16 – JPMorgan Chase & Co. priced $2.13 million of trigger phoenix autocallable optimization securities due April 20, 2016 linked to the common stock of Valero Energy Corp., according to a 424B2 filing with the Securities and Exchange Commission.
If Valero stock closes at or above the barrier price – 65% of the initial share price – on a quarterly observation date, the issuer will pay a contingent coupon for that period at the rate of 10.1% per year. Otherwise, no coupon will be paid that period.
If the shares close at or above the initial price on any quarterly observation date, the notes will be called at par plus the contingent coupon.
If the notes are not called and Valero shares finish at or above the 65% trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline from the initial price.
UBS Financial Services Inc. and J.P. Morgan Securities LLC are the agents.
| Issuer: | JPMorgan Chase & Co.
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| Issue: | Trigger phoenix autocallable optimization securities
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| Underlying stock: | Valero Energy Corp. (Symbol: VLO)
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| Amount: | $2.13 million
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| Maturity: | April 20, 2016
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| Coupon: | 10.1%, payable quarterly if stock closes at or above barrier price on observation date for that period
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| Price: | Par of $10
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| Payout at maturity: | Par plus contingent coupon if Valero shares finish at or above trigger price; otherwise, par plus stock return
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| Call: | Automatically at par plus contingent coupon if Valero shares close at or above initial price on any quarterly observation date
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| Initial share price: | $44.92
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| Barrier/trigger price: | $29.20, 65% of initial price
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| Pricing date: | Oct. 14
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| Settlement date: | Oct. 16
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| Underwriters: | UBS Financial Services Inc. and J.P. Morgan Securities LLC
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| Fees: | 1.5%
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| Cusip: | 48127H414
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