Credit Suisse plans contingent coupon callable yield notes on indexes

By Devika Patel

Knoxville, Tenn., Sept. 19 – Credit Suisse AG, London Branch, plans to price contingent coupon callable yield notes due Sept. 29, 2022 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a monthly coupon at an annualized rate of 5% to 5.5% if each index closes above its barrier level, expected to be about 60% of its initial level, on the observation date for that month. The exact coupon and barrier will be set at pricing.

The notes are callable in whole but not in part at par on any quarterly call date from Sept. 25, 2018 through June 24, 2022.

The payout at maturity will be par unless either of the indexes finishes below its knock-in level, expected to be 60% of the initial level, in which case investors will lose 1% for each 1% decline of the worse performing index. The exact knock-in level will be set at pricing.

Credit Suisse Securities (USA) LLC is the agent.

The notes (Cusip: 22550BGZ0) are expected to price Sept. 26 and settle Sept. 29.

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