New Issue: Credit Suisse prices $2.7 million high/low coupon callable notes tied to three ETFs

By Wendy Van Sickle

Columbus, Ohio, March 23 – Credit Suisse AG, London Branch priced $2.7 million of high/low coupon callable yield notes due March 22, 2019 linked to the Energy Select Sector SPDR fund, the Utilities Select Sector SPDR fund and the Technology Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable quarterly at 10.55% per year if each underlier closes at or above its knock-in level, 60% of its initial level, on the observation date for that quarter. Otherwise, the interest rate for that quarter will be 1% per year.

The notes will be callable at Credit Suisse’s option on any coupon payment date starting on Sept. 22, 2017.

The payout at maturity will be par unless any underlier finishes below its initial level and any underlie closes below its 60% knock-in level any day during the life of the notes, in which case investors will lose 1% for every 1% that the least performing underlier declines from its initial level.

Credit Suisse Securities (USA) LLC is the agent.

Issuer:	Credit Suisse AG, London Branch
Issue:	High/low coupon callable yield notes
Underlying funds:	Energy Select Sector SPDR fund, Utilities Select Sector SPDR fund and Industrial Select Sector SPDR fund
Amount:	$2,697,000
Maturity:	March 22, 2019
Coupon:	Each quarter, notes pay coupon at rate of 10.55% per year if knock-in event does not occur during that quarter; otherwise, coupon will be 1% per year for that interest period and each subsequent interest period
Price:	Par
Payout at maturity:	Par unless knock-in event has occurred, in which case par plus return of worst-performing fund, subject to maximum payout of par
Call option:	At par on any interest payment date beginning on Sept. 22, 2017
Knock-in event:	Any fund closes below knock-in level on any day during life of notes
Initial levels:	$69.80 for energy fund, $51.23 for utilities fund, $53.34 for industrial fund
Knock-in levels:	$41.88 for energy fund, $30.738 for utilities fund, $32.004 for industrial fund; 60% of initial levels
Pricing date:	March 17
Settlement date:	March 22
Agent:	Credit Suisse Securities (USA) LLC
Fees:	0.7%
Cusip:	22548QXQ3

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.