Societe Generale plans dual direction knock-out notes on oil index

By Marisa Wong

Morgantown, W.Va., Feb. 10 – Societe Generale plans to price 0% autocallable contingent return capped dual direction knock-out buffered non-principal protected notes due Feb. 27, 2020 linked to the S&P GSCI Crude Oil Index Excess Return, according to a term sheet.

If the index closes at or above its initial level on any annual review date, the notes will be automatically called at par plus a call premium of 10% per year.

A knock-out event occurs if the final index level is less than the knock-out level, which is 55% of the initial level.

If the index return is zero or positive and a knock-out event has not occurred, the payout at maturity will be $1,400 per $1,000 principal amount.

If the index return is negative but a knock-out event has not occurred, the payout will be par plus the absolute value of the index return.

If a knock-out event has occurred, investors will be fully exposed to the index decline.

SG Americas Securities, LLC is the placement agent.

The notes will price on Feb. 24 and settle on Feb. 29.

The Cusip number is 83369EFM7.

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