JPMorgan plans digital contingent coupon CDs due 2018 tied to stocks

By Toni Weeks

San Diego, Sept. 4 - JPMorgan Chase & Co. plans to price digital contingent coupon certificates of deposit due Sept. 28, 2018 linked to a basket of stocks, according to a term sheet.

The basket includes the common stocks of Avon Products, Inc., Bristol-Meyers Squibb Co., Goldcorp Inc., General Mills, Inc., Newmont Mining Corp., Reynolds American Inc., Southern Co., Tiffany & Co., Verizon Communications Inc. and Whirlpool Corp.

Interest is payable semiannually and will equal the sum of the weighted performances of the basket stocks, subject to a minimum coupon of 0%. If a basket stock's underlying return is zero or positive, its performance will be equal to the coupon cap, which will be at least 6% and will be set at pricing. If the underlying return is negative, the basket component's performance will be the greater of the stock return and negative 15%.

The payout at maturity will be par.

The CDs (Cusip: 48124JJN9) are expected to price Sept. 25 and settle Sept. 28.

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

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