JPMorgan plans digital contingent coupon CDs tied to 10 stocks

By Marisa Wong

Madison, Wis., Sept. 8 – JPMorgan Chase Bank, NA plans to price digital contingent coupon certificates of deposit due Sept. 30, 2021 linked to a basket of stocks, according to a term sheet.

The equally weighted basket includes the common stocks of Caterpillar Inc., CenturyLink, Inc., Duke Energy Corp., Ford Motor Co., Internal Business Machines Corp., Eli Lilly and Co., Procter & Gamble Co., Philip Morris International Inc., Potash Corp. of Saskatchewan Inc. and Sysco Corp.

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 5%. The coupon cap is expected to be at least 7% and will be set at pricing.

The payout at maturity will be par.

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

The CDs are expected to price on Sept. 25 and settle on Sept. 30.

The Cusip number is 48125TXH3.

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