Credit Suisse plans callable contingent income notes linked to S&P 500

By Angela McDaniels

Tacoma, Wash., Oct. 22 – Credit Suisse AG plans to price callable contingent income securities due Nov. 4, 2025 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a coupon at the rate of 7.1% per year if the index closes at or above the coupon barrier level, 75% of the initial index level, on the observation date for that quarter.

If the index finishes at or above the knock-in level, 60% of its initial level, the payout at maturity will be par plus the final coupon, if applicable. If the index finishes below the knock-in level, investors will be fully exposed to the index’s decline.

Beginning Nov. 4, 2016, the notes will be callable at par on any interest payment date.

Morgan Stanley & Co. LLC is acting as distributor.

The notes will price Oct. 30 and settle Nov. 4.

The Cusip number is 22546VP67.

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