JPMorgan plans callable fixed-to-floating notes linked to CMS rates

By Toni Weeks

San Luis Obispo, Calif., June 18 – JPMorgan Chase & Co. plans to price callable fixed-to-floating notes due July 3, 2034 linked to the 30-year Constant Maturity Swap rate and the two-year Constant Maturity Swap rate, according to an FWP with the Securities and Exchange Commission.

The interest rate is expected to be 9.5% for the first year. After that it will accrue at four times the spread of the 30-year CMS rate over the two-year CMS rate minus 25 basis points, subject to a minimum rate of zero and a maximum rate that is expected to be 9.5% per year. Interest will be payable quarterly.

The payout at maturity will be par.

The notes are callable at par plus accrued interest on any quarterly redemption date after one year.

The notes (Cusip: 48126N7A9) are expected to price June 30 and settle July 3.

J.P. Morgan Securities LLC is the agent.

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