By Devika Patel
Knoxville, Tenn., Sept. 16 – Credit Suisse AG, London Branch, priced $515,000 of contingent coupon callable yield notes due Sept. 15, 2017 linked to United States Steel Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly coupon of 15% per year if the closing price of U.S. Steel stock is equal to or greater than the barrier price, 50% of the initial price, on a monthly observation date. Otherwise, holders will not receive the contingent interest payment for that month.
The notes are callable at par plus the contingent coupon on any monthly valuation date after Dec. 12, 2016.
If the notes are not called, the payout at maturity will be par if the final share price is greater than or equal to the knock-in price, 50% of the initial price. If the final share price is less than the knock-in price, investors will receive a number of shares equal to $1,000 divided by the initial share price, or at the company’s option, the cash equivalent.
Credit Suisse Securities (USA) LLC is the agent.
| Issuer: | Credit Suisse AG, Nassau Branch
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| Issue: | Contingent coupon callable yield notes
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| Underlying stock: | United States Steel Corp. (Symbol: X)
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| Amount: | $515,000
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| Maturity: | Sept. 15, 2017
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| Coupon: | 15% per year, payable monthly if U.S. Steel shares close at or above barrier price on monthly observation date
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| Price: | Par
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| Payout at maturity: | Par in cash unless U.S. Steel shares finish below knock-in price, in which case a number of shares equal to $1,000 divided by the initial share price
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| Call option: | At par plus contingent coupon on any monthly observation date beginning Dec. 12, 2016
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| Initial share price: | $17.43
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| Barrier/knock-in price: | $8.715, 50% of initial share price
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| Pricing date: | Sept. 12
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| Settlement date: | Sept. 15
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| Agents: | Credit Suisse Securities (USA) LLC
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| Fees: | 2.875%
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| Cusip: | 22549JBX7
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