JPMorgan eyes callable contingent interest notes on biotech, oil funds

By Sarah Lizee

Olympia, Wash., Oct. 17 – JPMorgan Chase Financial Co. LLC plans to price callable contingent interest notes due Oct. 21, 2022 linked to the lesser performing of the SPDR S&P Biotech exchange-traded fund and the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

The guarantor is JPMorgan Chase & Co.

Every six months, the notes will pay a contingent interest payment at an annual rate of 14% if each fund closes at or above its interest barrier level, 55% of its initial level, on the review date for that period.

The notes will be callable at par plus any contingent interest payment due on any semiannual review date other than the final one.

If the notes have not been called, the payout at maturity will be par plus the final contingent interest payment if both funds close above their trigger values, 55% of initial levels.

Otherwise investors will lose 1% for each 1% decline of the worst-performing fund.

J.P. Morgan Securities LLC is the agent.

The notes will price on Oct. 18.

The Cusip number is 48132FNZ5.

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