JPMorgan to price digital contingent coupon CDs linked to 10 stocks

By Toni Weeks

San Luis Obispo, Calif., Aug. 6 – JPMorgan Chase Bank, NA plans to price digital contingent coupon certificates of deposit due Aug. 31, 2021 linked to a basket of common stocks, according to a term sheet.

The equally weighted basket includes the common stocks of Caterpillar Inc., CenturyLink, Inc., Duke Energy Corp., Ford Motor Co., International Business Machines Corp., Eli Lilly and Co., Procter & Gamble Co., Philip Morris International Inc., Potash Corp. of Saskatchewan Inc. and Sysco Corp.

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 5%. The coupon cap is expected to be at least 7% and will be set at pricing.

The payout at maturity will be par.

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

The CDs are expected to price Aug. 26 and settle Aug. 29.

The Cusip number is 48125TVQ5.

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