By Tali Rackner
Norfolk, Va., Jan. 6 – JPMorgan Chase & Co. priced $7.38 million of contingent income autocallable securities due Jan. 6, 2017 linked to the common stock of Valero Energy Corp., according to a 424B2 filed with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 12% if Valero closes at or above its downside threshold level, 75% of its initial level, on the observation date for that quarter.
The notes will be called at par of $10 if Valero stock closes at or above its initial price on any contingent payment date other than the final one.
The payout at maturity will be par plus the contingent coupon unless Valero finishes below its downside threshold level, in which case investors will be fully exposed to the decline.
J.P. Morgan Securities LLC is the agent. Distribution is through Morgan Stanley Wealth Management.
| Issuer: | JPMorgan Chase & Co.
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | Valero Energy Corp. (NYSE: VLO)
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| Amount: | $7,377,790
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| Maturity: | Jan. 6, 2017
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| Contingent payment: | 12% annually, payable quarterly if Valero stock closes at or above downside threshold level on determination date for that quarter
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| Price: | Par of $10
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| Payout at maturity: | Par plus contingent coupon if Valero stock finishes at or above downside threshold; otherwise full exposure to any losses
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| Call: | At par plus contingent payment if Valero stock closes at or above initial share price on any determination date other than the final one
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| Initial stock price: | $71.58
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| Downside threshold level: | $53.685, 75% of initial price
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| Pricing date: | Dec. 30
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| Settlement date: | Jan. 5
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| Agent: | J.P. Morgan Securities LLC
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| Fees: | 1.75%
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| Cusip: | 48128A731
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