JPMorgan to price digital contingent coupon CDs linked to stock basket

By Marisa Wong

Madison, Wis., Sept. 1 - JPMorgan Chase Bank, NA plans to price digital contingent coupon certificates of deposit due Sept. 29, 2017 linked to an equally weighted basket of stocks, according to a term sheet.

The basket includes the common stocks of Abbott Laboratories, Amazon.com, Inc., American Express Co., Barrick Gold Corp., Bristol-Myers Squibb Co., CVS Caremark Corp., Dow Chemical Co., Intel Corp., Reynolds American Inc. and Whole Foods Market, Inc.

Interest is payable in September 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: 48123YPH3) are expected to price Sept. 27 and settle Sept. 30.

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

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