By Angela McDaniels
Tacoma, Wash., Feb. 2 - Credit Suisse AG, Nassau Branch priced an additional $1.25 million principal amount of 0% VelocityShares 3x Long Gold exchange-traded notes due Oct. 14, 2031 linked to the S&P GSCI Gold Index Excess Return, according to a 424B2 filing with the Securities and Exchange Commission.
The additional notes priced at 106.34, or $53.17 per $50.00 principal amount.
Credit Suisse plans to issue up to $100 million of the notes from time to time. So far, the company has priced $15 million principal amount of notes at prices ranging from 80.78 to 107.74.
The payout at maturity will equal the closing indicative value of the notes on Oct. 8, 2031.
The closing indicative value of the notes on the inception date was $50. The closing indicative value on each subsequent day 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 will equal (a) one plus (b) the daily accrual plus (c) (i) the index return on that day times (ii) three. 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 equals (a) the closing indicative value on the preceding day times (b) 0.0135 divided by (c) 365.
The notes are putable at a minimum of 25,000 notes. Holders will receive a cash payment per ETN equal to the greater of zero and the closing indicative value on the early redemption valuation date - three business days before the early redemption date - minus an early redemption charge of 0.05%.
The notes are listed on the NYSE Arca under the ticker symbol "UGLD"
Credit Suisse Securities (USA) LLC is the agent.
| Issuer: | Credit Suisse AG, Nassau Branch
|
| Issue: | VelocityShares 3x Long Gold exchange-traded notes
|
| Underlying index: | S&P GSCI Gold Index Excess Return
|
| Amount: | $15 million, increased from $5 million
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| Maturity: | Oct. 14, 2031
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| Coupon: | 0%
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| Price: | Par of $50 for $5 million; 97.56 for $1.25 million; 107.74 for $1.25 million; 80.78 for $1.25 million; 82.22 for $2.5 million; 82.38 for $1.25 million; 86.94 for $1.25 million; 106.34 for $1.25 million
|
| Payout at maturity: | Closing indicative value on Oct. 8, 2031; closing indicative value equals (a) (i) closing indicative value on preceding day times (ii) daily ETN performance minus (b) daily investor fee
|
| Daily ETN performance: | One plus daily accrual plus product of index return on that day times three
|
| Daily investor fee: | Closing indicative value on preceding day times 0.0135 divided by 365
|
| Initial indicative value: | $50
|
| Put option: | At greater of zero and closing indicative value on early redemption valuation date, minus early redemption charge of 0.05%; minimum of 25,000 notes
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| Pricing dates: | Oct. 14 for $5 million; Nov. 21 for $1.25 million; Dec. 1 for $1.25 million; Dec. 14 for $1.25 million; Dec. 19 for $2.5 million; Jan. 3 for $1.25 million; Jan. 13 for $1.25 million; Feb. 1 for $1.25 million
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| Settlement dates: | Oct. 19 for original issue; Nov. 23 for first add-on; Dec. 5 for second add-on; Dec. 19 for third add-on; Dec. 22 for fourth add-on; Jan. 6 for fifth add-on; Jan. 19 for sixth add-on; Feb. 3 for seventh add-on
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| Agent: | Credit Suisse Securities (USA) LLC
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| Fees: | None
|
| Cusip: | 22542D688
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| Listing: | NYSE Arca: UGLD
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