JPMorgan plans digital contingent coupon CDs linked to stock basket

By Marisa Wong

Madison, Wis., July 6 - JPMorgan Chase Bank, NA plans to price digital contingent coupon certificates of deposit due July 29, 2016 linked to a basket of 10 stocks, according to a term sheet.

The equally weighted basket includes Abbott Laboratories, Amazon.com, Inc., CVS Caremark Corp., Dell Inc., General Electric Co., Goldcorp Inc., Nike, Inc., Reynolds American Inc., Time Warner Inc. and Whole Foods Market, Inc.

Interest is payable in July of each year 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 positive, its performance will be a fixed percentage equal to at least 9%, with the exact percentage to be set at pricing. Otherwise, its performance will be the greater of its return and negative 35%.

The payout at maturity will be par.

The CDs (Cusip: 48123YMU7) are expected to price July 27 and settle on July 30.

J.P. Morgan Securities Inc. is the agent. Incapital LLC is the distributor.

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