JPMorgan to price contingent coupon CDs linked to Asia basket

By Angela McDaniels

Tacoma, Wash., Jan. 4 - JPMorgan Chase Bank, NA plans to price contingent coupon certificates of deposit due Jan. 31, 2019 linked to a basket of stocks, according to a term sheet.

The equally weighted basket includes the common stocks or American Depositary Shares of Baidu, Inc., China Mobile Ltd., Hitachi, Ltd., HSBC Holdings plc, Icici Bank Ltd., Nippon Telegraph and Telephone Corp., Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk., Taiwan Semiconductor Manufacturing Co. Ltd., Toyota Motor Corp. and YUM! Brands, Inc.

Interest is payable annually and will equal the sum of the weighted returns of the basket stocks, subject to a minimum coupon of 0.75% to 1% each year. The exact minimum coupon will be set at pricing. Each stock's return will be subject to a cap of 6% and a floor of negative 25%.

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

The CDs (Cusip: 48123Y4U7) are expected to price Jan. 26 and settle Jan. 31.

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

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