By Angela McDaniels
Tacoma, Wash., Sept. 1 – JPMorgan Chase & Co. priced $3 million of leveraged callable CMS curve-linked notes due Aug. 31, 2035, according to a 424B2 filing with the Securities and Exchange Commission.
The issuer said it may increase the issue size prior to settlement but is not required to do so.
The coupon is 10% for the first year. After that, it will be the leverage factor multiplied by the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate minus 25 basis points, subject to a minimum rate of zero and a maximum rate of 10% per year. The leverage factor is four in years two through 10 and eight in years 11 through 20. Interest is payable quarterly.
The payout at maturity will be par.
Beginning Aug. 31, 2017, the notes will be callable at par on any quarterly redemption date.
J.P. Morgan Securities LLC is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Leveraged callable CMS curve-linked notes
|
| Underlying rates: | 30-year and two-year Constant Maturity Swap rates
|
| Amount: | $3 million
|
| Maturity: | Aug. 31, 2035
|
| Coupon: | 10% for first year; after that, leverage factor multiplied by spread of 30-year CMS rate over two-year CMS rate minus 25 bps, subject to minimum rate of zero and maximum rate of 10% per year; leverage factor is four in years two through 10 and eight in years 11 through 20; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on any coupon payment date from Aug. 31, 2017 onward
|
| Pricing date: | Aug. 26
|
| Settlement date: | Aug. 31
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 3.5%
|
| Cusip: | 48125UUL4
|
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