Credit Suisse plans autocallable reverse convertibles linked to Biogen

By Angela McDaniels

Tacoma, Wash., July 17 – Credit Suisse AG, London Branch plans to price contingent coupon autocallable reverse convertible securities due Oct. 26, 2018 linked to the common stock of Biogen Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Each month, the notes will pay a contingent coupon if Biogen stock closes at or above the coupon barrier level on the observation date for that month. The contingent coupon rate is expected to be 8.15% per year, the coupon barrier level is expected to be 70% of the initial share price, and both will be set at pricing.

The notes will be automatically called at par if Biogen shares close at or above the initial share price on Jan. 23, 2018, April 23, 2018 or July 23, 2018.

A knock-in event will occur if Biogen stock closes at or below the knock-in level, 70% of the initial share price, on any day during the life of the notes.

The payout at maturity will be par unless a knock-in event occurs and Biogen shares finish below the initial share price, in which case investors will receive a number of Biogen shares 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.

The notes will price July 21.

The Cusip number is 22545FAE2.

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