By Angela McDaniels
Tacoma, Wash., Nov. 8 – JPMorgan Chase Financial Co. LLC priced $1.99 million of contingent income autocallable securities with step-up redemption threshold level feature due Nov. 7, 2019 linked to the class A common stock of Alphabet Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by JPMorgan Chase & Co.
If Alphabet 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 8.15%.
The notes will be called at par of $10 plus the contingent coupon if Alphabet 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
|
| Guarantor: | JPMorgan Chase & Co.
|
| Issue: | Contingent income autocallable securities with step-up redemption threshold level feature
|
| Underlying stock: | Alphabet Inc. (Symbol: GOOGL)
|
| Amount: | $1,994,800
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| Maturity: | Nov. 7, 2019
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| Coupon: | 8.15% per year, payable quarterly if Alphabet shares close at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10.00
|
| 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
|
| Call: | At par plus contingent coupon if Alphabet shares close at or above redemption threshold on any quarterly determination date other than final determination date
|
| Initial share price: | $624.88
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| Downside threshold: | $781.10, or 80% of initial share price
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| Redemption thresholds: | $820.155, of 105% of initial stock price, on first through fourth determination dates; $859.21, or 110% of initial stock price, on fifth through eighth determination dates; $898.265, or 115% of initial stock price, on ninth through 11th determination dates
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| Pricing date: | Nov. 4
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| Settlement date: | Nov. 9
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| Agent: | J.P. Morgan Securities LLC
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| Distribution: | Morgan Stanley Smith Barney LLC
|
| Fees: | 2.5%
|
| Cusip: | 48128P720
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