JPMorgan to price digital contingent coupon CDs linked to 10 stocks

By Toni Weeks

San Luis Obispo, Calif., Nov. 5 – JPMorgan Chase Bank, NA plans to price digital contingent coupon certificates of deposit due Nov. 30, 2021 linked to a basket of stocks, equally weighted, according to a term sheet.

The underlying companies are CME Group Inc., CenturyLink, Inc., Exelon Corp., Health Care REIT, Inc., International Business Machines Corp., Kinder Morgan, Inc., Lorillard, Inc., Marathon Petroleum Corp., Potash Corp. of Saskatchewan Inc. and AT&T Inc.

Interest is payable annually and will equal the sum of the weighted performances of the basket stocks, subject to a minimum coupon of 1.3% to 1.5%.

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 10%. The coupon cap is expected to be 5%, with the exact percentage to 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 will price Nov. 24 and settle Nov. 28.

The Cusip number is 48125TF42.

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