By Sarah Lizee
Olympia, Wash., Oct. 30 – JPMorgan Chase Financial Co. LLC priced $7.56 million of 0% knock-out notes due April 30, 2021 linked to gold, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be guaranteed by JPMorgan Chase & Co.
A knock-out event will occur if on any day during the life of the notes the commodity closes above 130% of its initial level.
If a knock-out event has not occurred, the payout at maturity will be 96% of par plus the return of the commodity, subject to a floored payout of $960 per $1,000 of notes. This means that the price of gold needs to rise by at least 4% for investors to receive their principal back.
If a knock-out event has occurred, the payout will be $1,110.50 per $1,000 note.
J.P. Morgan Securities LLC is the agent.
Issuer: | JPMorgan Chase Financial Co. LLC
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Guarantor: | JPMorgan Chase & Co.
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Issue: | Knock-out notes
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Underlying commodity: | Gold
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Amount: | $7,555,000
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Maturity: | April 30, 2021
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If a knock-out event has not occurred, 96% of par plus the return of the commodity, subject to a minimum payout of $960 per $1,000 of notes; if a knock-out event has occurred, $1,110.50 per $1,000 note; knock-out event will occur if commodity ever closes above 130% of initial level
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Initial commodity level: | $1,513.45
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Knock-out level: | 130% of initial level
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Pricing date: | Oct. 25
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Settlement date: | Oct. 30
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Agent: | J.P. Morgan Securities LLC
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Fees: | 1.25%
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Cusip: | 48130USL0
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