Published on 9/19/2017 in the Prospect News Structured Products Daily.
New Issue: Credit Suisse prices $1 million 11.8% contingent autocall reverse converts on Alaska Air
By Susanna Moon
Chicago, Sept. 18 – Credit Suisse AG, London Branch priced $1 million of contingent coupon autocallable reverse convertible securities due Sept. 17, 2018 linked to Alaska Air Group, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 11.8% if Alaska Air shares close at or above the 80% coupon barrier on the observation date for that quarter.
The notes will be called at par plus the coupon if Alaska Air shares close at or above the initial share price on any review date.
The payout at maturity will be par unless the shares ever close at or below the 80% knock-in level during the life of the notes and finish below the initial share price, in which case investors will receive a number of Alaska Air shares equal to $1,000 divided by the initial share price or, at the issuer’s option, the cash equivalent.
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 stock: | Alaska Air Group, Inc. (Symbol: ALK)
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| Amount: | $1 million
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| Maturity: | Sept. 17, 2018
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| Contingent coupon: | 11.8%, payable quarterly if stock closes at or above 80% coupon barrier level on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless stock falls and ever closes at or below knock-in price during life of notes, in which case a number of Alaska Air shares equal to $1,000 divided by the initial share price
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| Call: | At par plus the coupon if Alaska Air shares close at or above initial share price on Dec. 12, 2017, March 12, 2018 or June 12, 2018
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| Initial level: | $76.32
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| Knock-in level: | $61.056, 80% of initial level
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| Pricing date: | Sept. 12
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| Settlement date: | Sept. 15
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| Agent: | Credit Suisse Securities (USA) LLC
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| Fees: | 1.25%
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| Cusip: | 22549JKS8
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