By Angela McDaniels
Tacoma, Wash., Oct. 5 - Credit Suisse AG, Nassau Branch sold $15 million of 0% exchange-traded notes due Oct. 6, 2020 linked to the Credit Suisse Merger Arbitrage Liquid Index (Net), according to a 424B2 filing with the Securities and Exchange Commission.
The company plans to issue up to $1 billion of the notes. The remainder will be sold from time to time.
The index uses quantitative methodology to track a dynamic basket of securities held as long or short positions and cash. It is designed to capture the spread, if any, between the price at which the stock of a target company trades after a proposed acquisition of that company is announced and the price that the acquiring company has proposed to pay for the stock of the target company.
The notes are putable in increments of $1 million or more on any business day, and they may be called in whole beginning Oct. 1, 2012 if the principal amount of the notes outstanding is $10 million or less.
The payout at maturity or upon redemption will be par of $20 plus the index return minus a 0.55% annualized investor fee as well as an index calculation fee of 0.5% per year.
The issuer plans to list the notes on NYSE Arca under the symbol "CSMA."
Credit Suisse Securities (USA) LLC is the underwriter.
| Issuer: | Credit Suisse AG, Nassau Branch
|
| Issue: | Exchange-traded notes
|
| Underlying index: | Credit Suisse Merger Arbitrage Liquid Index (Net)
|
| Amount: | $15 million
|
| Maturity: | Oct. 6, 2020
|
| Coupon: | 0%
|
| Price: | Par of $20
|
| Payout at maturity: | Par plus index return minus 0.55% annualized investor fee as well as index calculation fee of 0.5% per year
|
| Put option: | In increments of $1 million of more at any time
|
| Call option: | Beginning Oct. 1, 2012 if $10 million or less remains outstanding
|
| Pricing date: | Oct. 1
|
| Settlement date: | Oct. 6
|
| Underwriter: | Credit Suisse Securities (USA) LLC
|
| Cusip: | 22542D845
|
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