Credit Suisse to price one-year Stars linked to two iShares MSCI ETFs

By Angela McDaniels

Tacoma, Wash., Oct. 2 – Credit Suisse AG plans to price 0% Strategic Accelerated Redemption Securities due November 2015 linked to an equally weighted basket comprised of the iShares MSCI EAFE exchange-traded fund and the iShares MSCI Emerging Markets exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

Beginning six months after issuance, the notes will be automatically called at par of $10 plus an annualized call premium of 6% to 10% if the basket closes at or above its initial level on any quarterly observation date. The exact call premium will be set at pricing.

If the notes are not called and the final basket level is at least 95% of the initial level, the payout will be par. Otherwise, investors will lose 1% for every 1% that the basket declines beyond 5%.

BofA Merrill Lynch is the agent.

The notes will price in October and settle in November.

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