By Marisa Wong
Madison, Wis., Oct. 30 – JPMorgan Chase & Co. priced $7.22 million of contingent income autocallable securities due Oct. 27, 2017 linked to the common stock of Schlumberger NV, according to a 424B2 filing with the Securities and Exchange Commission.
If Schlumberger 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 10%.
The notes will be called at par of $10 plus the contingent coupon if Schlumberger shares close at or above the initial 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 receive a cash amount equal to the value of a number of Schlumberger shares equal to $10 divided by the initial share price. The issuer has the option to make the payment in Schlumberger shares instead of cash.
J.P. Morgan Securities LLC is the agent. Distribution is through Morgan Stanley Smith Barney LLC.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Contingent income autocallable securities
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| Underlying stock: | Schlumberger NV (Symbol: SLB)
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| Amount: | $7,216,520
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| Maturity: | Oct. 27, 2017
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| Coupon: | If Schlumberger shares close at or above downside threshold level on a quarterly determination date, notes pay a contingent payment that quarter at annualized rate of 10%
|
| Price: | Par of $10.00
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| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, cash amount equal to value of 0.10284 Schlumberger shares; issuer has option to make payment in Schlumberger shares instead of cash
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| Call: | At par plus contingent coupon if Schlumberger shares close at or above initial price on any quarterly determination date other than final determination date
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| Initial share price: | $97.24
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| Downside threshold: | $77.792, 80% of initial price
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| Pricing date: | Oct. 24
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| Settlement date: | Oct. 29
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| Agent: | J.P. Morgan Securities LLC
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| Distribution: | Morgan Stanley Smith Barney LLC
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| Fees: | 2.5% (2% selling commission, 0.5% structuring fee)
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| Cusip: | 48127H323
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