JPMorgan plans digital contingent coupon CDs due 2019 tied to stocks

By Susanna Moon

Chicago, April 3 - JPMorgan Chase Bank, NA plans to price digital contingent coupon certificates of deposit due April 30, 2019 linked to a basket of equally weighted stocks, according to a term sheet.

The underlying companies are Altria Group, Inc., Clorox Co., Duke Energy Corp., Goldcorp Inc., Hasbro, Inc., Kellogg Co., Lockheed Martin Corp., Lorillard, Inc., PepsiCo, 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 0.25%.

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 30%. The coupon cap is expected to be at least 6% 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 will price on April 25 and settle on April 30.

The Cusip number is 48124JBK3.

© 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.