JPMorgan Chase Issues $1,000 Auto Callable Notes Linked to Airline and Energy Stocks
JPMorgan Chase has introduced auto callable contingent interest notes with a price tag of $1,000 each, linked to the weakest performing stock among American Airlines Group, Phillips 66, and Southwest Airlines. The notes mature on October 5, 2028, with JPMorgan Chase & Co. providing full and unconditional guarantees.
The minimum contingent interest is guaranteed at $14.7917 per $1,000 note when the specified stock condition is satisfied. Contingent interest is payable on review dates where all three reference stocks close at or above 50% of their initial values. The minimum stated contingent interest rate is 17.75% per annum.
Investors should be aware that the estimated value of the notes is below the original issue price, with a preliminary supplement estimating the value at approximately $962.80 per $1,000 note if priced on the date of issuance. The estimated value will not fall below $930.00 per $1,000 after terms are finalized.
The notes lack Federal Deposit Insurance Corporation (FDIC) or other government agency insurance and are not bank obligations or guarantees. Selling, structuring, and hedging costs contribute to the original issue price exceeding the estimated value.