Credit Suisse plans contingent coupon callable yield notes on indexes

By Devika Patel

Knoxville, Tenn., Dec. 3 – Credit Suisse AG, London branch, plans to price contingent coupon callable yield notes due Jan. 3, 2022 linked to the S&P 500 index and the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a quarterly coupon at a rate of between approximately 8.75% and 10.75% per year if each index closes at or above its coupon barrier level, expected to be 70% of its initial level, on the observation date for that period. The exact coupon and coupon barrier level will be set at pricing.

The notes are callable in whole but not in part at par on any quarterly early redemption date beginning on July 3, 2019.

The payout at maturity will be par unless either of the indexes finishes below its knock-in level, expected to be 70% of the initial level, in which case investors will lose 1% for each 1% decline of the worse performing index from its initial level. The exact knock-in level will be set at pricing.

Credit Suisse Securities (USA) LLC is the agent.

The notes (Cusip: 22551LMH0) are expected to price Dec. 28 and settle Jan. 3.

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