JPMorgan Chase & Co. Offers New Financial Notes with Guarantee

JPMorgan Chase & Co. is offering a new financial product called notes that come with a guarantee from the company. The original issue price of the notes will be partially paid back to investors in connection with any repurchases by JPMorgan Chase & Co.

The initial predetermined period for this repayment will be the shorter of six months and one-half of the stated term of the notes, which is intended to reflect the structure of the notes and the estimated costs of hedging them. The original issue price includes projected hedging profits, if any, and estimated hedging costs.

The notes are offered to meet investor demand for products that reflect the risk-return profile and market exposure provided by the notes. The opinion of Davis Polk & Wardwell LLP, as special products counsel to JPMorgan Financial and JPMorgan Chase & Co., is that when the notes have been issued and delivered against payment, they will be valid and binding obligations of JPMorgan Financial and the related guarantee will constitute a valid and binding obligation of JPMorgan Chase & Co.