Credit Suisse plans contingent coupon autocallables tied to Abercrombie

By Angela McDaniels

Tacoma, Wash., Aug. 6 – Credit Suisse AG plans to price contingent coupon autocallable yield notes due Aug. 20, 2015 linked to the class A common stock of Abercrombie & Fitch Co., according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a coupon at a rate that is expected to be 13.25% per year if Abercrombie & Fitch stock closes at or above the coupon barrier price on the observation date for that quarter. The coupon barrier price is expected to be about 70% of the initial share price.

The notes will be automatically called at par plus accrued interest if the stock closes at or above the trigger price, which is expected to be equal to the initial share price, on Nov. 17, 2014, Feb. 17, 2015 or May 15, 2015.

If the notes are not called and the closing price of Abercrombie & Fitch shares stays above the knock-in price throughout the life of the notes, the payout at maturity will be par. Otherwise, investors will receive par plus the stock return, subject to a maximum payout of par. The knock-in price is expected to be about 65% of the initial share price.

The exact terms will be set at pricing.

Credit Suisse Securities (USA) LLC is the agent.

The notes will price Aug. 15 and settle Aug. 20.

The Cusip number is 22547QS23.

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