JPMorgan plans digital contingent coupon CDs due 2020 tied to stocks

By Marisa Wong

Madison, Wis., Jan. 7 - JPMorgan Chase Bank, NA plans to price digital contingent coupon certificates of deposit due Jan. 31, 2020 linked to a basket of stocks, according to a term sheet.

The equally weighted basket includes Bristol-Meyers Squibb Co., Dow Chemical Co., Duke Energy Corp., Hasbro, Inc., Kellogg Co., Newmont Mining Corp., Nike, Inc., Reynolds American Inc., Verizon Communications Inc. and Walgreen Co.

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 15%. The coupon cap is expected to be at least 6.25% and will be set at pricing.

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

The CDs (Cusip: 48124JRK6) are expected to price on Jan. 28 and settle on Jan. 31.

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

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