By Toni Weeks
San Luis Obispo, Calif., Feb. 13 - JPMorgan Chase & Co. priced $10.72 million of autocallable contingent interest notes due March 4, 2015 linked to Boeing Co. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If Boeing shares close at or above the barrier level, 85% of the initial share price, on a quarterly review date, the notes will pay a 3.475% coupon that interest period, which is equivalent to 13.9% per year. If Boeing shares close below the barrier level, no coupon will be paid for that interest period.
If Boeing shares close at or above the initial share price on any of the first three quarterly review dates, the notes will be automatically called at par plus the coupon.
If the notes have not been called and the final share price is greater than or equal to the 85% trigger level, the payout at maturity will be par plus the contingent coupon. If the final share price is less than the barrier level, investors will be exposed to the decline from the initial price.
J.P. Morgan Securities LLC is the underwriter.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Autocallable contingent interest notes
|
| Underlying stock: | Boeing Co. (NYSE: BA)
|
| Amount: | $10.72 million
|
| Maturity: | March 4, 2015
|
| Coupon: | 13.9% per year, payable quarterly if closing price of Boeing stock is equal to or greater than barrier price; otherwise, no coupon for that interest period
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon unless Boeing shares finish below barrier price, in which case investors share fully in losses
|
| Call: | At par plus contingent coupon if closing share price on May 29, Aug. 28, 2014 or Nov. 28, 2014 is greater than or equal to initial share price
|
| Initial share price: | $130.16
|
| Barrier price: | $110.636, 85% of initial share price
|
| Pricing date: | Feb. 11
|
| Settlement date: | Feb. 14
|
| Underwriter: | J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 48126N4C8
|
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