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JPMorgan to price digital contingent coupon CDs linked to 10 stocks
By Angela McDaniels
Tacoma, Wash., April 17 – JPMorgan Chase Bank, NA plans to price digital contingent coupon certificates of deposit due April 27, 2023 linked to a basket of stocks, according to a term sheet.
The equally weighted basket includes Apple, Inc., AT&T Inc., Bristol-Myers Squibb Co., Caterpillar Inc., Cisco Systems, Inc., Coca-Cola Co., Merck & Co., Inc., Nike, Inc., Procter & Gamble Co. and Starbucks Corp.
Interest is payable annually and will equal the sum of the weighted performances of the basket stocks, subject to a minimum interest rate that is expected to be at least 1% per year.
If a stock’s return is greater than or equal to zero, its performance will be equal to the coupon cap. Otherwise, its performance will be equal to the greater of its return and negative 10%. The coupon cap is expected to be at least 5%. The exact minimum interest rate and coupon cap will be set at pricing.
The payout at maturity will be par plus the final coupon.
J.P. Morgan Securities LLC is the agent. Incapital LLC is distributor.
The CDs are expected to price April 24.
The Cusip number is 48126XS55.
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