JPMorgan plans digital contingent coupon CDs due 2019 linked to stocks

By Angela McDaniels

Tacoma, Wash., Feb. 3 - JPMorgan Chase Bank, NA plans to price digital contingent coupon certificates of deposit due Feb. 28, 2019 linked to a basket of stocks, according to a term sheet.

The equally weighted basket includes the common stocks of Altria Group, Inc., CenturyLink, Inc., General Mills, Inc., Goldcorp Inc., Lorillard, Inc., Newmont Mining Corp., PepsiCo, Inc., PG&E Corp., Target Corp. and Verizon Communications 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 30%. The coupon cap is expected to be at least 7% and will be set at pricing.

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

The CDs (Cusip: 48123Y6F8) are expected to price Feb. 24 and settle Feb. 29.

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

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