JPMorgan plans digital contingent coupon CDs linked to stock basket

By Marisa Wong

Madison, Wis., Jan. 3 - JPMorgan Chase Bank, NA plans to price digital contingent coupon certificates of deposit due Jan. 29, 2021 linked to a basket of common stocks, according to a term sheet.

The equally weighted basket includes the common stocks of Altria Group, Inc., AT&T Inc., Bristol-Myers Squibb Co., Coca-Cola Co., Kimberly-Clark Corp., McDonald's Corp., Philip Morris International Inc., Procter & Gamble Co., Southern Co. and Unilever plc.

Interest is payable annually and will equal the sum of the weighted performances of the basket stocks, subject to a minimum coupon of zero.

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 8% and will be set at pricing.

The payout at maturity will be par.

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

The CDs will price Jan. 28 and settle Jan. 31.

The Cusip number is 48125TCU7.

© 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.