JPMorgan plans digital contingent coupon CDs due 2017 linked to stocks

By Toni Weeks

San Diego, Nov. 2 - JPMorgan Chase Bank, NA plans to price digital contingent coupon certificates of deposit due Nov. 30, 2017 linked to an equally weighted basket of 10 stocks, according to a term sheet.

The basket includes the common stocks of Apple, Inc., Amazon.com, Inc., AT&T, Inc., Clorox Co., Goldman Sachs Group, Inc., Lockheed Martin Corp., Lowe's Cos., Inc., Newmont Mining Corp., Pfizer Inc. and Philip Morris International Inc.

Interest is payable in November of each year and will equal the sum of the weighted performances of the basket stocks, subject to a minimum coupon of 0%. If a basket stock's underlying return is zero or positive, its performance will be equal to the coupon cap of 6% to 8% that will be set at pricing. If the underlying return is negative, the basket component's performance will be the greater of the stock return and negative 30%.

The payout at maturity will be par.

The CDs (Cusip: 48123YZ66) are expected to price Nov. 22 and settle Nov. 30.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.