JPMorgan plans contingent income autocallables linked to Bristol-Myers

By Toni Weeks

San Luis Obispo, Calif., May 1 – JPMorgan Chase & Co. plans to price contingent income autocallable securities due May 11, 2018 linked to Bristol-Myers Squibb Co. shares, according to an FWP with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of at least 8% if Bristol-Myers Squibb shares close at or above the 80% downside threshold level on the determination date for that quarter. The exact coupon will be set at pricing.

The notes will be called at par plus the coupon if the 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 stock price for the first four determination dates, 110% of the initial stock price for the next four determination dates and 115% of the initial stock price for the final four determination dates.

If the notes have not been called and the stock finishes at or above the 80% downside threshold level, the payout at maturity will be par plus the coupon.

Otherwise, investors will be fully exposed to any losses.

The notes (Cusip: 48127T129) are expected to price May 8.

J.P. Morgan Securities LLC is the agent. Morgan Stanley Wealth Management will handle distribution.

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