Credit Suisse plans absolute return barrier securities on stock basket

By Toni Weeks

San Luis Obispo, Calif., March 5 – Credit Suisse AG plans to price 0% absolute return barrier securities linked to a basket of five stocks, weighted equally, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are expected to mature between Jan. 11, 2019 and March 11, 2019.

The basket components include the common stocks of ConocoPhillips, Exxon Mobil Corp. and Occidental Petroleum Corp. and the American Depositary Shares of BP plc and Total SA.

A knock-in event occurs if the basket finishes at or below the 70% knock-in level.

The payout at maturity will be par plus any gain in the basket.

If the basket falls but a knock-in event has not occurred, the payout will be par plus the absolute value of the return, subject to a maximum redemption amount that is expected to be $1,299.99 per $1,000 principal amount.

Otherwise, investors will be fully exposed to any losses.

The exact terms will be set at pricing.

The notes (Cusip: 22546V6E1) will price March 6 and settle March 11.

Credit Suisse Securities (USA) LLC is the agent.

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