JPMorgan plans seven-year contingent coupon CDs on 10 stocks, ADSs

By Marisa Wong

Madison, Wis., Oct. 5 - JPMorgan Chase Bank, NA plans to price contingent coupon certificates of deposit due Oct. 31, 2018 linked to an equally weighted basket of stocks and American Depositary Shares, according to a term sheet.

The basket includes the common stocks of China Mobile Ltd., Canon Inc., Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk., Hitachi Ltd., HSBC Holdings plc, Toyota Motor Corp., Taiwan Semiconductor Manufacturing Co. Ltd. and YUM! Brands, Inc. and the ADSs of Icici Bank Ltd. and Baidu, Inc.

Interest is payable in October of each year and will equal the sum of the weighted returns of the basket stocks and ADSs, subject to a minimum coupon of 1%. Each basket component's return will be subject to a floor of negative 30% and a cap of 5% to 7% that will be set at pricing.

The payout at maturity will be par.

The CDs (Cusip: 48123YU95) are expected to price Oct. 26 and settle Oct. 31.

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

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