JPMorgan (JPM) prices auto callable contingent interest notes linked to ServiceNow stock
Rhea-AI Filing Summary
JPMorgan Chase Financial Company LLC is offering $265,000 of Auto Callable Contingent Interest Notes linked to the common stock of ServiceNow, Inc., fully and unconditionally guaranteed by JPMorgan Chase & Co. The notes have a 2-year term, maturing on August 10, 2028, in $1,000 denominations.
Investors may receive a Contingent Interest Payment of $12.50 per $1,000 (15.00% per annum, 1.25% per month) on each monthly Interest Payment Date if, on the corresponding Review Date, the ServiceNow share price is at or above the Interest Barrier of 41.00% of the Initial Value, equal to $48.1135, with any unpaid interest amounts catching up on later qualifying dates. The notes are automatically called on certain Review Dates if the stock closes at or above the Initial Value of $117.35, returning principal plus applicable interest and ending further payments.
If the notes are not called and the Final Value is below the Trigger Value (also 41.00% of the Initial Value), the principal repayment is reduced one-for-one with the stock’s negative return, so investors can lose more than 59.00% and up to all principal. The notes are unsecured obligations of JPMorgan Financial, guaranteed by JPMorgan Chase & Co., and subject to both entities’ credit risk. The price to public is $1,000 per note, including $18.50 in fees and commissions, versus an estimated value of $961.80 per note.
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Key Figures
Key Terms
Contingent Interest Payment financial
Interest Barrier financial
Trigger Value financial
Stock Adjustment Factor financial
Acceleration Event regulatory
prepaid forward contracts financial
Offering Details
FAQ
What security is JPM (JPMorgan Chase Financial) offering in this 424B2 filing?
JPMorgan Chase Financial is offering Auto Callable Contingent Interest Notes linked to the common stock of ServiceNow, Inc., fully and unconditionally guaranteed by JPMorgan Chase & Co., with a scheduled maturity on August 10, 2028.
What interest can investors in JPM’s ServiceNow-linked notes potentially earn?
Investors may receive a Contingent Interest Payment of $12.50 per $1,000 note each month, equal to a 15.00% per annum Contingent Interest Rate, when the ServiceNow share price is at or above the Interest Barrier on the applicable Review Date.
How do the Interest Barrier and Trigger Value work on JPM’s ServiceNow notes (JPM)?
Both the Interest Barrier and Trigger Value are set at 41.00% of the Initial Value, or $48.1135. Below this level on Review Dates, interest may not be paid, and below it at maturity, principal is reduced in line with the stock’s negative return.
When can JPM’s ServiceNow-linked notes be automatically called?
The notes may be automatically called on specified Review Dates starting February 8, 2027 if ServiceNow’s closing price is at or above the Initial Value of $117.35. Investors then receive $1,000 plus due Contingent Interest Payments, and no further payments are made.
What principal risk do investors face in JPM’s Auto Callable notes tied to ServiceNow?
If the notes are not called and the Final Value is below the Trigger Value, investors lose 1% of principal for each 1% decline from the Initial Value, potentially losing more than 59.00% and up to all of their principal at maturity.
What are the fees and estimated value for JPM’s ServiceNow-linked notes?
Each note has a $1,000 price to public, including $18.50 in fees and commissions, leaving $981.50 in proceeds to the issuer. The estimated value at pricing was $961.80 per $1,000 principal amount note.
What credit risks apply to investors in the JPM ServiceNow Auto Callable notes (JPM)?
The notes are unsecured and unsubordinated obligations of JPMorgan Chase Financial, fully guaranteed by JPMorgan Chase & Co. Payments depend on the creditworthiness of both entities; a default could result in loss of some or all invested principal.
AI-generated analysis. How Rhea-AI works. Not financial advice.