JPMorgan will issue no additional ETNs linked to Alerian MLP index

By Angela McDaniels

Tacoma, Wash., Dec. 17 – JPMorgan Chase & Co. retired 10 million, or $190,366,100 principal amount, of its exchange-traded notes due May 24, 2024 linked to the volume-weighted average price level of the Alerian MLP index and reduced the maximum amount of notes authorized for issuance to reflect this retirement, according to a 424B3 filing with the Securities and Exchange Commission.

The cap was lowered to 119 million notes, or $2,265,356,590 principal amount, from 129 million notes, or $2,455,722,690 principal amount. The new cap is equal to the amount of notes issued.

The initial $75 million of notes priced on April 1, 2009.

Each note has a face value of $19.03661, which is equal to the initial volume-weighted average price level of the index divided by 10.

On each quarterly coupon payment date, the notes will pay an amount in cash equal to the distributions that holders would be entitled to receive on the record date for any index component less the accrued tracking fee. The tracking fee is an amount per note equal to 0.2125% (equivalent to 0.85% per year) times the current indicative value on the previous day. On each day, the current indicative value equals the index's volume-weighted average price level on that date divided by the initial level.

If the index payout is less than the tracking fee on any coupon date, no coupon will be paid on that date, and an amount equal to the difference between the tracking fee and the index payout will be included in the tracking fee for the next coupon. This process will be repeated until the index payout for a coupon valuation date is greater than the tracking fee.

The payout at maturity will be par plus the index return plus the final coupon amount minus the tracking fee.

The notes are putable on the last business day of each week, subject to a 0.125% fee. The redemption amount will be calculated in the same way as the payout at maturity.

The notes are listed on the NYSE Arca under the symbol "AMJ."

J.P. Morgan Securities LLC is the agent.

The Cusip number is 46625H365.

© 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.