JPMorgan plans digital contingent coupon CDs due 2019 tied to stocks

By Marisa Wong

Madison, Wis., Dec. 17 - JPMorgan Chase Bank, NA plans to price digital contingent coupon certificates of deposit due Dec. 31, 2019 linked to a basket of stocks, according to a term sheet.

The equally weighted basket includes Apple Inc., Bristol-Myers Squibb Co., Total SA, Goldcorp Inc., McDonald's Corp., Proctor & Gamble Co., Royal Dutch Shell plc, Unilever plc, Verizon Communications Inc. and Wal-Mart Stores 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.

If a stock's return is greater than or equal to zero, its performance will be equal to the coupon cap. Otherwise, its performance will be equal to the greater of its return and negative 20%. The coupon cap is expected to be at least 6% and will be set at pricing.

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

The CDs (Cusip: 48124JPL6) are expected to price on Dec. 21.

J.P. Morgan Securities LLC is the agent. Advisors Asset Management, Inc. is the distributor.

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