JPMorgan plans seven-year contingent coupon CDs linked to stock basket

By Marisa Wong

Madison, Wis., Feb. 2 - JPMorgan Chase Bank, NA plans to price contingent coupon certificates of deposit due Feb. 27, 2018 linked to an equally weighted basket of stocks, according to a term sheet.

The basket includes the common stocks of Altria Group, Inc., Amazon.com, Inc., AT&T Inc., Bristol-Myers Squibb Co., General Mills, Inc., Intel Corp., Newmont Mining Corp., Time Warner Cable Inc., Wells Fargo & Co. and Whole Foods Market, Inc.

Interest is payable in February of each year and will equal the sum of the weighted returns of the basket stocks, subject to a minimum coupon of at least 1.25%. The return of each stock will be subject to a cap of at least 7% and a floor of negative 20%. The exact minimum coupon and cap will be set at pricing.

The payout at maturity will be par.

The CDs (Cusip: 48123YTT3) are expected to price Feb. 23 and settle Feb. 28.

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

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