JPMorgan plans digital contingent coupon CDs due 2018 linked to stocks

By Angela McDaniels

Tacoma, Wash., Jan. 4 - JPMorgan Chase Bank, NA plans to price digital contingent coupon certificates of deposit due Jan. 31, 2018 linked to a basket of stocks, according to a term sheet.

The equally weighted basket includes the common stocks of Amazon.com, Inc., Apple Inc., Barrick Gold Corp., Best Buy Co., Inc., Bristol-Myers Squibb Co., Clorox Co., Goldman Sachs Group, Inc., Intel Corp., Lorillard, Inc. and Lowe's Cos. Inc.

Interest is payable annually and will equal the sum of the weighted performances of the basket stocks, subject to a minimum coupon of zero each year.

If a basket stock's underlying return is greater than or equal to zero, its performance will be equal to the coupon cap. If its underlying return is negative, its performance will be the greater of its underlying return and negative 30%. The coupon cap is expected to be 6% to 8% and will be set at pricing.

The payout at maturity will be par plus the final coupon, if any.

The CDs (Cusip: 48123Y4Y9) are expected to price Jan. 26 and settle Jan. 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.