JPMorgan to sell seven-year digital contingent coupon CDs on 10 stocks

By Marisa Wong

Madison, Wis., Oct. 5 - JPMorgan Chase Bank, NA plans to price digital contingent coupon certificates of deposit due Oct. 31, 2018 linked to an equally weighted basket of stocks, according to a term sheet.

The basket includes the common stocks of Apollo Group, Inc., Best Buy Co., Inc., Hewlett-Packard Co., Eli Lilly and Co., Altria Group, Inc., Newmont Mining Corp., Netflix, Inc., AT&T Inc., Gilead Sciences, Inc. and Target Corp.

Interest is payable in October of each year and will equal the sum of the weighted performances of the basket stocks, subject to a minimum coupon of 0.5%. If a basket stock's underlying return is zero or positive, its performance will be equal to the coupon cap of 7% to 9% that will be set at pricing. If the underlying return is negative, the basket component's performance will be the greater of the stock return and negative 30%.

The payout at maturity will be par.

The CDs (Cusip: 48123YV45) are expected to price Oct. 26 and settle Oct. 31.

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

© 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.