Published on 7/7/2020 in the Prospect News Structured Products Daily.
New Issue: Credit Suisse sells $2.55 million contingent coupon autocallable reverse convertibles on railroad stocks
By Wendy Van Sickle
Columbus, Ohio, July 7 – Credit Suisse AG, London Branch priced $2.55 million of contingent coupon autocallable reverse convertible securities due June 29, 2022 linked to the least performing of the stocks of Canadian Pacific Railway Ltd., CSX Corp., Kansas City Southern and Norfolk Southern Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly at an annualized rate of 9% if each stock closes above its coupon barrier, 50% of its initial level, on the related observation date.
After six months, the notes will be called at par if the shares of the least performing stock close at or above its initial price on any monthly observation date other than the final one.
If the notes are not called, the payout at maturity will be par unless any of the stocks finishes below its 50% knock-in level, in which case investors will receive a number of shares of the least performing stock equal to $1,000 divided by the initial share price or, at the issuer’s option, an amount in cash equal to the value of those shares.
Credit Suisse Securities (USA) LLC is the agent.
| Issuer: | Credit Suisse AG, London Branch
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| Issue: | Contingent coupon autocallable reverse convertible securities
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| Underlying stocks: | Canadian Pacific Railway Ltd., CSX Corp., Kansas City Southern and Norfolk Southern Corp.
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| Amount: | $2.55 million
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| Maturity: | June 29, 2022
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| Coupon: | 9% per year, payable monthly if each stock closes above coupon barrier on observation date
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| Price: | Par
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| Payout at maturity: | Par unless any stock finishes below knock-in price, in which case shares of least performing stock equal to $1,000 divided by initial share price or amount in cash equal to value of those shares
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| Call: | After six months at par if shares close at or above initial share price on any monthly observation date other than final one
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| Initial prices: | $245.48 for Canadian, $67.50 for CSX, $142.58 for Kansas, $169.15 for Norfolk
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| Coupon barrier/knock-in levels: | $122.74 for Canadian, $33.75 for CSX, $71.29 for Kansas, $84.575 for Norfolk; 50% of initial levels
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| Pricing date: | June 24
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| Settlement date: | June 29
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| Agent: | Credit Suisse Securities (USA) LLC
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| Fees: | 3%
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| Cusip: | 22550MGB9
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