JPMorgan plans contingent income autocallables linked to Alibaba ADS

By Devika Patel

Knoxville, Tenn., July 13 – JPMorgan Chase Financial Co. LLC plans to price contingent income autocallable securities due July 20, 2023 linked to the American Depositary Shares of Alibaba Group Holding Ltd., according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be guaranteed by JPMorgan Chase & Co.

If Alibaba ADS close at or above the downside threshold level, 75% of the initial share price, on a quarterly determination date, the notes will pay a contingent coupon that quarter at an annualized rate of at least 8.75%, with the exact coupon to be set at pricing.

The notes will be called at par of $10 plus the contingent coupon if Alibaba ADS close at or above the initial ADS price on any determination date other than the final one, beginning on Oct. 19.

If the final ADS 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 ADS price is less than the initial ADS price.

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

The notes (Cusip: 48132L491) will price on July 17 and settle three business days after pricing.

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