JPMorgan to price spread notes linked to 30-year, two-year CMS rates

By Angela McDaniels

Tacoma, Wash., April 3 - JPMorgan Chase & Co. plans to price callable interest rate spread notes due April 30, 2034 linked to the 30-year Constant Maturity Swap rate and the two-year Constant Maturity Swap rate, according to an FWP filing with the Securities and Exchange Commission.

The interest rate will be 10% for the first year. Beginning April 30, 2015, the interest rate will be four times the spread of the 30-year CMS rate over the two-year CMS rate minus 25 basis points, subject to a minimum interest rate of zero and a maximum interest rate of 10% per year. Interest will be payable quarterly.

The payout at maturity will be par.

Beginning April 30, 2015, the notes will be callable at par on any interest payment date.

J.P. Morgan Securities LLC is the agent. Distribution is through Morgan Stanley Smith Barney LLC.

The notes are expected to price April 25.

The Cusip number is 48126N5V5.

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