JPMorgan plans digital contingent coupon CDs due 2018 linked to stocks

By Angela McDaniels

Tacoma, Wash., May 1 - JPMorgan Chase Bank, NA plans to price digital contingent coupon certificates of deposit due May 29, 2020 linked to a basket of common stocks, according to a term sheet.

The equally weighted basket includes the common stocks of Apple, Inc., Bristol-Meyers Squibb Co., Cliffs Natural Resources Inc., Coach, Inc., Dow Chemical Co., Family Dollar Stores, Inc., Hewlett-Packard Co., Kellogg Co., Newmont Mining Corp. and Time Warner Cable Inc.

Interest is payable annually and will equal the sum of the weighted performances of the basket stocks, subject to a minimum coupon of zero.

If a stock's return is greater than or equal to zero, its performance will be equal to the coupon cap. Otherwise, its performance will be equal to the greater of its return and negative 20%. The coupon cap is expected to be at least 5% and will be set at pricing.

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

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

The CDs are expected to price May 28 and settle May 31.

The Cusip number is 48124JB64.

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