Published on 3/18/2015 in the Prospect News Structured Products Daily.
New Issue: JPMorgan prices $1.54 million trigger phoenix autocallables tied to MSCI EAFE, Russell
By Toni Weeks
San Luis Obispo, Calif., March 18 – JPMorgan Chase & Co. priced $1.54 million of 0% trigger phoenix autocallable optimization securities due March 19, 2025 linked to the MSCI EAFE index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
If each index closes at or above its coupon barrier – 70% of the initial level – on any quarterly observation date, the issuer will pay an annualized contingent coupon of 7.25%. Otherwise, no coupon will be paid for that quarter.
If each index closes at or above its initial level on any observation date after one year, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called and each index finishes at or above the trigger level, 50% of the initial level, the payout at maturity will be par plus the contingent coupon, if any. If either index dips below its trigger level, investors will be fully exposed to the decline of the least-performing index.
UBS Financial Services Inc. and J.P. Morgan Securities LLC are the underwriters.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying indexes: | MSCI EAFE and Russell 2000
|
| Amount: | $1,538,000
|
| Maturity: | March 19, 2025
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| Coupon: | 7.25%, payable quarterly if each index closes at or above coupon barrier on observation date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus contingent coupon, if any, if each index closes at or above trigger level; otherwise, par plus return of least-performing index
|
| Call: | Automatically at par plus contingent coupon if each index closes at or above initial level on quarterly observation date beginning March 14, 2016
|
| Initial levels: | 1,815.84 for MSCI EAFE, 1,232.138 for Russell
|
| Trigger levels: | 907.92 for MSCI EAFE, 616.069 for Russell, 50% of initial levels
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| Coupon barriers: | 1,271.09 for MSCI EAFE, 862.497 for Russell, 70% of initial levels
|
| Pricing date: | March 13
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| Settlement date: | March 18
|
| Underwriters: | UBS Financial Services Inc. and J.P. Morgan Securities LLC
|
| Fees: | 3.5%
|
| Cusip: | 48127R156
|
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