By Marisa Wong
Morgantown, W.Va., Sept. 15 – Credit Suisse AG, Nassau Branch plans to issue $100 million principal amount of 0% AxelTrader 3x Long Brent Crude Oil exchange-traded notes due Sept. 14, 2037 linked to the S&P GSCI Brent Crude Oil Excess Return, according to a 424B2 filing with the Securities and Exchange Commission.
The company sold an initial tranche of 250,000 notes at par of $100 on Sept. 14. The remaining notes will be sold from time to time at varying prices.
The payout at maturity will equal the closing indicative value of the notes on Sept. 9, 2037.
The closing indicative value of the notes on the inception date was $100. On subsequent days, it equals (a) (i) the closing indicative value on the preceding day times (ii) the daily ETN performance of the notes on that day minus (b) the daily investor fee.
The closing indicative value will never be less than zero. If the intraday indicative value of the notes is less than or equal to zero at any time or the closing indicative value is equal to zero, the closing indicative value of the notes on that day and on all following days will be zero.
The daily ETN performance equals (a) one plus (b) the daily accrual plus (c) (i) the index return (over the previous day’s closing index level) times (ii) 3. The daily accrual is the rate of interest that could be earned on a notional capital reinvestment at the 91-day U.S. Treasury rate.
The daily investor fee is an annualized amount equal to 1.35% of the closing indicative value on the preceding day.
The notes are putable at a minimum of 25,000 notes. Holders will receive the closing indicative value minus an early redemption charge of 0.1%.
The company can accelerate the notes in whole but not in part at any time.
The notes will be listed on the NYSE Arca under the ticker symbol “UBRT.”
Credit Suisse Securities (USA) LLC is the agent.
| Issuer: | Credit Suisse AG, Nassau Branch
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| Issue: | AxelTrader 3x Long Brent Crude Oil ETNs
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| Underlying index: | S&P GSCI Brent Crude Oil Excess Return
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| Amount: | $100 million
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| Maturity: | Sept. 14, 2037
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| Coupon: | 0%
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| Price: | Par of $100 for initial $25 million
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| Payout at maturity: | Amount equal to closing indicative value of notes on Sept. 9, 2037
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| Closing indicative value: | Closing indicative value on preceding day times daily ETN performance on that day minus daily investor fee of 1.35% per year; daily ETN performance equals one plus daily accrual plus 3 times index’s return over previous day’s closing level
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| Put option: | Subject to minimum of 25,000 notes and 0.1% early redemption charge
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| Acceleration: | In whole but not in part at any time
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| Inception date: | Sept. 14
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| Settlement date: | Sept. 19 for $25 million
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| Agent: | Credit Suisse Securities (USA) LLC
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| Fees: | Up to 0.15%
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| Expected listing: | NYSE Arca: UBRT
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| Cusip: | 22539T258
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