By Marisa Wong
Morgantown, W.Va., Sept. 9 – JPMorgan Chase Financial Co. LLC priced $3.57 million of contingent income autocallable securities due Sept. 6, 2019 with step-up redemption threshold level feature linked to the common stock of Amgen Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by JPMorgan Chase & Co.
If Amgen 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 9%.
The notes will be called at par of $10 plus the contingent coupon if Amgen shares close at or above the redemption threshold level on any quarterly determination date other than the final determination date. The redemption threshold is 105% of the initial share price for the first four determination dates, 110% of the initial price for the next four dates and 115% of the initial price for the three dates after that.
If the final share price is greater than or equal to the downside threshold level, 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 Wealth Management is handling distribution.
| Issuer: | JPMorgan Chase Financial Co. LLC
|
| Guarantor: | JPMorgan Chase & Co.
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | Amgen Inc. (Symbol: AMGN)
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| Amount: | $3,565,760
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| Maturity: | Sept. 6, 2019
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| Coupon: | 9% per year, payable quarterly if Amgen shares close at or above downside threshold level on determination date for that quarter
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| 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 the contingent coupon if Amgen shares close at or above the redemption threshold level on any quarterly determination date other than the final determination date
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| Initial share price: | $169.77
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| Downside threshold: | $135.816, 80% of initial share price
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| Redemption threshold: | $178.2585, 105% of initial price, for first four determination dates; $186.747, 110% of initial price, for next four dates; $195.2355, 115% of initial price, for three dates after that
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| Pricing date: | Sept. 2
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| Settlement date: | Sept. 8
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| Agent: | J.P. Morgan Securities LLC
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| Distribution: | Morgan Stanley Wealth Management
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| Fees: | 2.5%
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| Cusip: | 46646X530
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