JPMorgan plans to price callable variable-rate range accrual CDs tied to 6-month Libor, Russell

By Toni Weeks

San Luis Obispo, Calif., March 6 - JPMorgan Chase Bank, NA plans to price callable variable-rate range accrual certificates of deposit due March 20, 2028 linked to six-month Libor and the Russell 2000 index, according to a term sheet.

The interest rate will be 8% for the first year. Beginning March 20, 2014, the interest rate will be equal to the interest factor multiplied by the proportion of days on which the index closes at or above 675.

The interest factor will be (a) 1.2 times

• 5% minus six-month Libor from March 20, 2014 to but excluding March 20, 2018;

• 5.5% minus six-month Libor from March 20, 2018 to but excluding March 20, 2023; and

• 6% minus six-month Libor from March 20, 2023 to but excluding March 20, 2028.

The interest factor cannot be less than zero. Interest will be payable quarterly.

The payout at maturity will be par.

Beginning on March 20, 2014, the CDs will be callable at par on any interest payment date.

The CDs (Cusip: 48124JWK0) are expected to price March 15 and settle March 20.

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

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