Published on 1/14/2019 in the Prospect News Structured Products Daily.
New Issue: Credit Suisse sells $889,000 contingent coupon autocallable reverse convertibles on oil funds
By Wendy Van Sickle
Columbus, Ohio, Jan. 14 – Credit Suisse AG, London Branch priced $889,000 of 8.25% contingent coupon autocallable reverse convertible securities due Jan. 18, 2022 linked to the least performing of the VanEck Vectors Oil Services ETF and the United States Oil Fund, LP, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly if each stock closes above its coupon barrier, 60% of its initial level, on the related observation date.
The notes will be called at par if the shares of the least performing stock close at or above its initial price on any quarterly trigger observation date.
The payout at maturity will be par unless either fund finishes below its 50% knock-in level, in which case investors will receive a number of shares of the least performing stock equal to $1,000 divided by the initial share price or, at the issuer’s option, an amount in cash equal to the value of those shares.
Credit Suisse Securities (USA) LLC is the agent.
Issuer: | Credit Suisse AG, London Branch
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Issue: | Contingent coupon autocallable reverse convertible securities
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Underlying funds: | VanEck Vectors Oil Services ETF and United States Oil Fund, LP
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Amount: | $889,000
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Maturity: | Jan. 18, 2022
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Coupon: | 8.25% per year, payable quarterly if each fund closes above coupon barrier on observation date
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Price: | Par
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Payout at maturity: | Par unless either fund finishes below knock-in price, in which case shares of least performing stock equal to $1,000 divided by initial share price or amount in cash equal to value of those shares
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Call: | At par plus the coupon if shares close at or above initial share price on any quarterly trigger observation date
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Initial prices: | $16.50 for VanEck, $11.10 for United States Oil
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Coupon barriers: | $9.90 for VanEck, $6.66 for United States Oil; 60% of initial levels
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Knock-in levels: | $8.25 for VanEck, $5.55 for United States Oil; 50% of initial levels
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Pricing date: | Jan. 11
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Settlement date: | Jan. 15
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Agent: | Credit Suisse Securities (USA) LLC
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Fees: | 3%
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Cusip: | 22549JD49
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