Credit Suisse to sell contingent coupon callable yield notes on ETFs

By Wendy Van Sickle

Columbus, Ohio, Aug. 23 – Credit Suisse AG, London Branch plans to price contingent coupon callable yield notes due May 29, 2020 linked to the SPDR S&P Regional Banking exchange-traded fund and the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a monthly coupon at an expected annualized rate of 8.5% if each underlying closes at or above its coupon barrier level, expected to be 70% of its initial level, on the observation date for that month. The exact coupon and coupon barrier level will be set at pricing.

The notes are callable in whole but not in part at par plus any coupon on any quarterly redemption date beginning on Feb. 28, 2019.

The payout at maturity will be par unless either of the underlyings finishes below its knock-in level, expected to be 60% of its initial level, in which case investors will lose 1% for each 1% decline of the worse performing underlying from its initial level. The exact knock-in level will be set at pricing.

Credit Suisse Securities (USA) LLC is the agent.

The notes (Cusip: 22551L5M8) are expected to price Aug. 27 and settle Aug. 30.

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