Credit Suisse plans contingent income autocallables on salesforce

By Sarah Lizee

Olympia, Wash., Oct. 18 – Credit Suisse AG, London Branch plans to price autocallable contingent income securities due Oct. 26, 2020 linked to the common stock of salesforce.com, inc., according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon if the stock closes at or above the downside threshold level on the observation date for that quarter. The contingent coupon rate is expected to be 8.2% per year, the downside threshold 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 of $10 if the stock closes at or above its initial share price on any quarterly observation date.

The payout at maturity will be par unless the stock finishes below the downside threshold level, in which case investors will lose 1% for every 1% that the stock declines from its initial share price.

Credit Suisse Securities (USA) Inc. is the agent. Morgan Stanley Smith Barney LLC is acting as distributor.

The notes will price Oct. 21.

The Cusip number is 22550K491.

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