By Angela McDaniels
Tacoma, Wash., June 6 – JPMorgan Chase Financial Co. LLC priced $4.35 million of contingent income autocallable securities due June 3, 2020 linked to the American Depositary Shares of Alibaba Group Holding Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by JPMorgan Chase & Co.
If Alibaba ADSs close at or above the downside threshold level, 75% of the initial ADS price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 11.65%.
The notes will be called at par of $10 plus the contingent coupon if Alibaba ADSs close at or above the initial ADS price on any quarterly determination date other than the final determination date.
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. Morgan Stanley Wealth Management is handling distribution.
| Issuer: | JPMorgan Chase Financial Co. LLC
|
| Guarantor: | JPMorgan Chase & Co.
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Alibaba Group Holding Ltd. (Symbol: BABA)
|
| Amount: | $4,345,050
|
| Maturity: | June 3, 2020
|
| Coupon: | 11.65% per year, payable quarterly if Alibaba ADSs close at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final ADS price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that final ADS price is less than initial ADS price
|
| Call: | At par plus contingent coupon if Alibaba ADSs close at or above initial ADS price on any quarterly determination date other than final determination date
|
| Initial ADS price: $149.26
|
| Downside threshold: | $111.945, 75% of initial ADS price
|
| Pricing date: | May 31
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| Settlement date: | June 5
|
| Agent: | J.P. Morgan Securities LLC
|
| Distribution: | Morgan Stanley Wealth Management
|
| Fees: | 1.75%
|
| Cusip: | 48132E745
|
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