JPMorgan Sells First 30-Year Benchmark Bonds Since December 2011

JPMorgan Chase & Co. (JPM), the largest U.S. bank, sold $750 million of 30-year bonds in its first dollar-denominated benchmark issue of the maturity in 20 months.

The 5.625 percent, subordinated notes yielded 190 basis points more than similar-maturity Treasuries, according to data compiled by Bloomberg. Proceeds will be used for general corporate purposes, the data show. Benchmark sales are typically at least $500 million.

JPMorgan issued $1.25 billion of 5.4 percent, 30-year debentures in December 2011 to yield 250 basis points more than benchmarks, Bloomberg data show. The notes traded at 108 cents on the dollar to yield 4.88 percent on Aug. 12, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

Two former JPMorgan employees were charged today by U.S. prosecutors with attempting to conceal trading losses last year as part of a probe of the bank’s $6.2 billion loss on derivatives trades.

Bruno Iksil, the Frenchman at the center of the case who became known as the “London whale” because his portfolio was so large, signed a non-prosecution agreement with the U.S. in June, the government said today.

To contact the reporter on this story: Scott Harrison in New York at sharrison52@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net

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