By Devika Patel
Knoxville, Tenn., June 21 – Credit Suisse AG priced $3.1 million of contingent income autocallable securities due June 19, 2020 linked to the common stock of lululemon athletica inc., according to a 424B2 filing with the Securities and Exchange Commission.
If lululemon shares close at or above the coupon barrier level, 75% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 12%.
The notes will be called at par of $10 plus the contingent coupon if lululemon shares close at or above the initial share price on any quarterly determination date other than the final determination date beginning Sept. 18, 2017.
If the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.
Credit Suisse Securities (USA) LLC is the agent. Morgan Stanley Wealth Management is handling distribution.
| Issuer: | Credit Suisse AG
|
| Issue: | Contingent income autocallable securities
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| Underlying stock: | lululemon athletica inc. (Symbol: LULU)
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| Amount: | $3,099,320
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| Maturity: | June 19, 2020
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| Coupon: | 12% per year, payable quarterly if lululemon shares close at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that final share price is less than initial share price
|
| Call: | At par plus contingent coupon if lululemon shares close at or above initial share price on any quarterly determination date other than final determination date beginning Sept. 18, 2017
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| Initial share price: | $52.97
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| Coupon barrier level: | $39.73, 75% of initial share price
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| Downside threshold: | $39.73, 75% of initial share price
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| Pricing date: | June 16
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| Settlement date: | June 21
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| Agent: | Credit Suisse Securities (USA) LLC
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| Distribution: | Morgan Stanley Wealth Management
|
| Fees: | 2.5%
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| Cusip: | 22549C311
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