JPMorgan Chase Files for Registration of KKR-Linked Contingent Income Securities
JPMorgan Chase Financial Company LLC has filed for registration of its 12-Month KKR Contingent Income Auto-Callable Securities. The securities are based on the performance of KKR & Co. Inc.'s common stock, with a stated principal amount of $1,000 per security.
According to the filing, investors will receive a contingent quarterly payment if the closing price of the underlying stock is greater than or equal to the downside threshold level on any determination date. The contingent quarterly payment will be at least 2.8625% of the stated principal amount per security.
If the final stock price is greater than or equal to the downside threshold level, investors will receive a payment at maturity equal to the stated principal amount plus the contingent quarterly payment with respect to the related determination date, as well as any previously unpaid contingent quarterly payments. If the final stock price is less than the downside threshold level, investors will receive a payment at maturity of at least 60% of the stated principal amount.
The securities are subject to the credit risks of JPMorgan Financial and JPMorgan Chase & Co., and the estimated value of the securities on the pricing date will be provided in the preliminary pricing supplement. The final terms and estimated valuation of the securities will also be included in the preliminary pricing supplement.