Published on 11/29/2018 in the Prospect News Investment Grade Daily.
New Issue: JPMorgan Chase gives details on $5 billion of fixed-to-floating notes
By Devika Patel
Knoxville, Tenn., Nov. 29 – JPMorgan Chase & Co. (A2/A-/AA-) offered further details about a $5 billion sale of fixed-to-floating rate notes that priced in two tranches on Wednesday, according to FWPs filed with the Securities and Exchange Commission.
A $2.5 billion tranche of 4.023% six-year fixed-to-floating rate notes priced with a spread of Treasuries plus 115 basis points. The notes have a 4.023% coupon until Dec. 5, 2023, and then at rate equal to Libor plus 100 bps.
The $2.5 billion of 4.452% 11-year fixed-to-floating rate notes priced with a spread of Treasuries plus 115 bps. The notes have a 4.452% coupon until Dec. 5, 2028, and then at rate equal to Libor plus 133 bps.
J.P. Morgan Securities LLC was the bookrunner.
The financial services company is based in New York City.
| Issuer: | JPMorgan Chase & Co.
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| Amount: | $5 billion
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| Securities: | Fixed-to-floating rate notes
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| Bookrunner: | J.P. Morgan Securities LLC
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| Co-managers: | ABN Amro Inc., BBVA Securities Inc., BMO Capital Markets Corp., BNY Mellon Capital Markets LLC, Capital One Securities, Inc., Fifth Third Securities Inc., ING Financial Markets LLC, KeyBanc Capital Markets Inc., Lloyds Securities Inc., Mizuho Securities USA Inc., MUFG, nabSecurities, LLC, Natixis Securities Americas LLC, NatWest Markets Securities Inc., PNC Capital Markets LLC, Regions Securities LLC, Santander Investment Securities Inc., SMBC Nikko Securities America, Inc., Standard Chartered Bank, SunTrust Robinson Humphrey Inc., TD Securities (USA) LLC, UniCredit Capital Markets LLC, Westpac Capital Markets, LLC, Drexel Hamilton, LLC, Loop Capital Markets LLC, Samuel A. Ramirez & Co. Inc. and Williams Capital Group LP
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| Trade date: | Nov. 28
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| Settlement date: | Dec. 5
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| Ratings: | Moody’s: A2
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| S&P: A-
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| Fitch: AA-
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| Distribution: | SEC registered
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|
|
| Fixed-to-floaters due 2024
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| Amount: | $2.5 billion
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| Maturity: | Dec. 5, 2024
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| Coupon: | 4.023% until Dec. 5, 2023; Libor plus 100 bps after that
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| Price: | Par
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| Spread: | Treasuries plus 115 bps
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| Call: | Make-whole call at Treasuries plus 20 bps until Dec. 5, 2023, then a par call on Dec. 5, 2023, then callable at par on or after Nov. 5, 2024
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| Price guidance: | Treasuries plus 120 bps area, plus or minus 5 bps; initial talk at Treasuries plus 125 bps-130 bps area
|
|
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| Fixed-to-floaters due 2029
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| Amount: | $2.5 billion
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| Maturity: | Dec. 5, 2029
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| Coupon: | 4.452% until Dec. 5, 2028; Libor plus 133 bps after that
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| Price: | Par
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| Spread: | Treasuries plus 140 bps
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| Call: | Make-whole call at Treasuries plus 25 bps until Dec. 5, 2028, then a par call on Dec. 5, 2028, then callable at par on or after Sept. 5, 2029
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| Price guidance: | Treasuries plus 145 bps area, plus or minus 5 bps; initial talk at Treasuries plus 150 bps-155 bps area
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