JPMorgan plans callable interest rate spread CDs on ICE swap rates

By Marisa Wong

Morgantown, W.Va., Feb. 8 – JPMorgan Chase Bank, NA plans to price callable interest rate spread certificates of deposit due Feb. 28, 2033 linked to the 30-year U.S. dollar ICE swap rate and the two-year U.S. dollar ICE swap rate, according to a term sheet.

The interest rate will be 7% for the first year. After that, it will be 7 times the spread of the 30-year ICE swap rate minus the two-year ICE swap rate, subject to a minimum interest rate of zero and a maximum rate of 7% per year. Interest will be payable quarterly.

The payout at maturity will be par.

Beginning Feb. 28, 2019 the CDs will be callable at par on any interest payment date.

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

The CDs will price Feb. 26.

The Cusip number is 48126YJ53.

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