JPMorgan plans seven-year contingent coupon CDs tied to 10 stocks

By Jennifer Chiou

New York, May 4 - JPMorgan Chase Bank, NA plans to price contingent coupon certificates of deposit due May 31, 2018 linked to an equally weighted basket of stocks, according to a term sheet.

The basket includes the common stocks of AMR Corp., Costco Wholesale Corp. Halliburton Co., Hess Corp., Kraft Foods Inc., PepsiCo, Inc., Qualcomm Inc., Silver Wheaton Corp., Wells Fargo & Co. and Wyndham Worldwide Corp.

Interest is payable in May of each year and will equal the sum of the weighted returns of the basket stocks, subject to a minimum coupon of 1% per year. The return of each stock will be subject to a cap of at least 8% and a floor of negative 30%. The exact cap will be set at pricing.

The payout at maturity will be par.

The CDs (Cusip: 48123YYS9) are expected to price on May 25 and settle on May 31.

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

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