By Wendy Van Sickle
Columbus, Ohio, Aug. 30 – JPMorgan Chase Financial Co. LLC priced a $500 add-on to its contingent income autocallable securities with step-up redemption threshold level feature due July 31, 2020 linked to the class A common stock of Celgene Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The company priced $1,584,000 of the notes on July 28.
The notes are guaranteed by JPMorgan Chase & Co.
If Celgene shares close at or above the downside threshold level, 80% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 8.25%.
The notes will be called at par of $10 plus the contingent coupon if Celgene shares close at or above the applicable redemption threshold level on any quarterly determination date other than the final determination date. The redemption threshold level is 105% of the initial share price on the first through fourth determination dates, 110% of the initial share price on the fifth through eighth determination dates and 115% of the initial share price on the ninth through 11th determination dates.
If the final share price is greater than or equal to the downside threshold level, 80% of the initial share price, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.
J.P. Morgan Securities LLC is the agent. Morgan Stanley Smith Barney LLC is handling distribution.
| Issuer: | JPMorgan Chase Financial Co. LLC
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| Guarantor: | JPMorgan Chase & Co.
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| Issue: | Contingent income autocallable securities with step-up redemption threshold level feature
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| Underlying stock: | Celgene Corp. (Symbol: CELB)
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| Amount: | $500 add-on
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| Original amount: | $1,584,000
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| Maturity: | July 31, 2020
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| Coupon: | 8.25% per year, payable quarterly if Celgene shares close at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10.00
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| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that final share price is less than initial share price
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| Call: | At par plus contingent coupon if Celgene shares close at or above redemption threshold on any quarterly determination date other than final determination date
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| Initial share price: | $134.10
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| Downside threshold: | $107.28, or 80% of initial share price
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| Redemption thresholds: | $140.805, or 105% of initial share price, on first through fourth determination dates; $147.51, or 110% of initial share price, on fifth through eighth determination dates; $154.215, or 115% of initial share price, on ninth through 11th determination dates
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| Reopening pricing date: | Aug. 25
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| Reopening settlement date: | Aug. 30
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| Original pricing date: | July 28
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| Original settlement date: | Aug. 2
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| Agent: | J.P. Morgan Securities LLC
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| Distribution: | Morgan Stanley Smith Barney LLC
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| Fees: | 2.5%
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| Cusip: | 48129G299
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