JPMorgan plans six-year digital contingent coupon CDs linked to stocks

By Marisa Wong

Madison, Wis., Sept. 6 - JPMorgan Chase Bank, NA plans to price digital contingent coupon certificates of deposit due Sept. 30, 2019 linked to a basket of 10 equally weighted common stocks, according to a term sheet.

The underlying companies are Hewlett-Packard Co., Kinross Gold Corp., Lorillard, Inc., McDonald's Corp., Mead Johnson Nutrition Co., Duke Energy Corp., Raytheon Co., Time Warner Cable Inc., Verizon Communications Inc. and Walgreen Co.

Interest is payable semiannually and will equal the sum of the weighted performances of the basket stocks, subject to a floor of zero.

If a stock's return is greater than or equal to zero, its performance will be equal to the coupon cap of at least 4.9% (equivalent to a rate of 9.8% per year). Otherwise, its performance will be equal to the greater of its return and negative 15%.

The payout at maturity will be par plus the final coupon.

J.P. Morgan Securities LLC is the agent.

The CDs will price on Sept. 25 and settle on Sept. 30.

The Cusip number is 48124J3T3.

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