By William Gullotti
Buffalo, N.Y., March 22 – JPMorgan Chase Financial Co. LLC priced $365 million of 1% cash-settled equity-linked notes due March 15, 2027 linked to the common stock of Salesforce, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by JPMorgan Chase & Co. and were sold at $1,099.80 per $1,000 principal amount, resulting in proceeds totaling $401,427,000.
Interest will be paid semiannually.
The notes are non-callable by the issuer.
The notes are convertible at the option of the investors, under specified conditions, for cash. If holders choose to convert, they will receive the alternative settlement amount which will be par times the final stock price on the valuation date over the threshold price. If the stock closes below the 115% threshold price, in this instance, investors will not receive a positive return.
There is make-whole protection if there is a change of control, liquidation, delisting or similar specified event for the reference stock. In that case, the notes will pay the alternative settlement amount, plus (b) the product of (i) a number of additional shares and (ii) the stock price. The number of additional shares is based on the deemed conversion rate of 2.8368.
The payout at maturity will be par unless the underlying stock finishes above its 115% threshold price, in which case it will be par multiplied by the quotient of the final stock price divided by the threshold price.
J.P. Morgan Securities LLC is the underwriter.
| Issuer: | JPMorgan Chase Financial Co. LLC
|
| Guarantor: | JPMorgan Chase & Co.
|
| Issue: | Cash-settled equity-linked notes
|
| Underlying stock: | Salesforce, Inc.
|
| Amount: | $365 million
|
| Proceeds: | $401,427,000
|
| Maturity: | March 15, 2027
|
| Coupon: | 1%, paid semiannually
|
| Price: | $1,099.80 per $1,000 note
|
| Payout at maturity: | Par unless stock appreciates by more than 15%, in which case par multiplied by quotient of final stock price divided by 115% threshold price
|
| Make-whole event: | If Salesforce undergoes a change of control, liquidation, delisting or similar event, alternative settlement amount plus (b) the product of (i) a number of additional shares and (ii) the stock price
|
| Conversion option: | Alternative settlement amount of par multiplied by quotient of share price on repurchase date divided by threshold price
|
| Initial level: | $306.5305
|
| Threshold price: | $352.51008; 115% of initial level
|
| Pricing date: | March 13
|
| Settlement date: | March 18
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | None
|
| Cusip: | 48134WL96
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
