JPMorgan plans digital contingent coupon CDs linked to stock basket

By Susanna Moon

Chicago, Feb. 6 – JPMorgan Chase Bank, NA plans to price digital contingent coupon certificates of deposit due Feb. 28, 2022 linked to a basket of 10 equally weighted stocks, according to a term sheet.

The underlying companies are CME Group Inc., CenturyLink, Inc., Exelon Corp., Ford Motor Co., International Business Machines Corp., Lorillard, Inc., Marathon Petroleum Corp., Potash Corp. of Saskatchewan Inc., AT&T Inc. and Williams Cos., Inc.

Interest is payable annually and will equal the sum of the weighted performances of the basket stocks, subject to a minimum coupon of 0.5%.

If a stock’s return is greater than or equal to zero, its performance will be equal to the coupon cap. Otherwise, its performance will be equal to the greater of its return and negative 10%. The coupon cap is expected to be 5.5%, with the exact percentage to be set at pricing.

The payout at maturity will be par.

J.P. Morgan Securities LLC is the agent. Incapital LLC is the distributor.

The CDs will price on Feb. 24 and settle on Feb. 27.

The Cusip number is 48125TZ65.

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