JPMorgan plans digital contingent coupon CDs tied to stock basket

By Susanna Moon

Chicago, May 5 - JPMorgan Chase Bank, NA plans to price digital contingent coupon certificates of deposit due May 28, 2021 linked to a basket of 10 equally weighted common stocks, according to a term sheet.

The underlying companies are GameStop Corp., Intel Corp., International Paper Co., Lorillard, Inc. Potash Corp. of Saskatchewan Inc., Rio Tinto plc, Staples, Inc., Seagate Technology plc, Symantec Corp. and Williams Cos., Inc.

Interest is payable annually and will equal the sum of the weighted performances of the basket stocks, subject to a minimum coupon of zero.

If a stock's return is greater than or equal to zero, its performance will be equal to the coupon cap. Otherwise, its performance will be equal to the greater of its return and negative 10%. The coupon cap is expected to be at least 9% and will be set at pricing.

The payout at maturity will be par.

J.P. Morgan Securities LLC is the agent. Incapital LLC is distributor.

The CDs will price on May 27 and settle on May 30.

The Cusip number is 48125TNW1.

© 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.