JPMorgan plans digital contingent coupon CDs tied to U.S. large caps

By Angela McDaniels

Tacoma, Wash., Sept. 13 - JPMorgan Chase Bank, NA plans to price digital contingent coupon certificates of deposit due Sept. 30, 2016 linked to an equally weighted basket of stocks, according to a term sheet.

The basket includes the common stocks of Altria Group, Inc., BCE Inc., Bristol-Myers Squibb Co., Berkshire Hathaway Inc. (class B), Hasbro, Inc., Hormel Foods Corp., Newmont Mining Corp., PNC Financial Services Group, Inc., Southern Co. and UnitedHealth Group 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 rate that is expected to be 7% to 10%, with the exact rate to be set at pricing. Otherwise, the stock's performance will be the greater of its return and negative 25%.

The payout at maturity will be par.

The CDs (Cusip: 48123YPK6) are expected to price Sept. 27 and settle Sept. 30.

J.P. Morgan Securities Inc. is the agent.

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