By Angela McDaniels
Tacoma, Wash., Aug. 11 – Credit Suisse AG, Nassau Branch sold an additional $3.68 million of Credit Suisse Silver Shares Covered Call exchange-traded notes due April 21, 2033 linked to the Credit Suisse Nasdaq Silver Flows 106 index, according to a 424B2 filing with the Securities and Exchange Commission.
The $5 million principal amount of additional notes priced at 73.6515, or $14.7303 per $20.00 principal amount, for $3,682,575 of proceeds.
The total issue size is now $39 million. The first $15 million of notes priced at par on April 17, 2013.
The company plans to sell up to $100 million of the notes from time to time at variable prices.
The notes offer investors access to a covered call strategy on a silver investment. They are designed to pay a variable monthly coupon.
The notes are callable in whole or in part at any time and are putable subject to a minimum of 50,000 ETNs and an early redemption charge of up to 0.125%. The notes will be automatically called if any event occurs that adversely affects the issuer's ability to hedge its obligations in connection with the ETNs including, but not limited to, if the intraday indicative value of the ETNs falls to 5% or less of the prior day's closing indicative value.
The ETNs are listed on Nasdaq under the ticker symbol "SLVO."
Credit Suisse Securities (USA) LLC is the agent.
| Issuer: | Credit Suisse AG, Nassau Branch
|
| Issue: | Credit Suisse Silver Shares Covered Call exchange-traded notes
|
| Underlying index: | Credit Suisse Nasdaq Silver Flows 106 index
|
| Amount: | $39 million, increased from $15 million
|
| Maturity: | April 21, 2033; may be extended at issuer's option for up to two additional five-year periods
|
| Coupon: | Variable monthly coupon based on premiums received from sale of monthly call options on iShares Silver Trust shares; could be zero
|
| Prices: | Par of $20 for original $15 million; 73.6515 for latest $5 million
|
| Payout at maturity: | Average of closing indicative values for five trading days ending April 18, 2033
|
| Closing indicative value: | Current principal amount plus any accrued coupon
|
| Current principal amount: Current principal amount on preceding day times daily index factor (closing index level on that day divided by closing level on preceding day) minus investor fee of 0.65% per year
|
| Put option: | Subject to minimum of 50,000 ETNs and up to 0.125% early redemption charge
|
| Call option: | At any time; in addition, notes will be automatically called if their intraday indicative value falls below 5% of prior day's closing indicative value
|
| Inception date: | April 16, 2013
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| Pricing dates: | April 16, 2013 for $15 million; Aug. 11 for latest $5 million
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| Settlement dates: | April 19, 2013 for original tranche; Aug. 12 for latest add-on
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| Agent: | Credit Suisse Securities (USA) LLC
|
| Listing: | Nasdaq: SLVO
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| Cusip: | 22542D449
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