JPMorgan plans contingent income autocallables tied to Bank of America

By Angela McDaniels

Tacoma, Wash., April 25 – JPMorgan Chase Financial Co. LLC plans to price contingent income autocallable securities due May 7, 2020 linked to the common stock of Bank of America Corp., according to an FWP filing with the Securities and Exchange Commission.

The notes will be guaranteed by JPMorgan Chase & Co.

If Bank of America shares close at or above the downside threshold level, 80% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of at least 8.5%. The exact rate will be set at pricing.

The notes will be called at par of $10 plus the contingent coupon if Bank of America shares close at or above the initial share price on any quarterly determination date other than the final determination date.

If the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.

J.P. Morgan Securities LLC is the agent. Morgan Stanley Smith Barney LLC is handling distribution.

The notes are expected to price May 3.

The Cusip number is 48132E208.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.