Credit Suisse increases VelocityShares 3x Long Natural Gas ETNs' maximum size to $1 billion

By Angela McDaniels

Tacoma, Wash., Aug. 14 - Credit Suisse AG, Nassau Branch increased the maximum amount of 0% VelocityShares 3x Long Natural Gas exchange-traded notes that it will issue to $1 billion from $500 million, according to a 424B2 filing with the Securities and Exchange Commission.

Since Feb. 7, 2012, the issuer has priced $582 million principal amount of notes. As of Aug. 1, the principal amount of notes outstanding was $418.75 million.

The notes linked to the S&P GSCI Natural Gas Index Excess Return.

The notes are scheduled to mature Feb. 9, 2032, but they may be extended at the issuer's option for up to two additional five-year periods.

The payout at maturity will equal the closing indicative value of the notes on Feb. 2, 2032.

The closing indicative value of the notes on the inception date was $50.00. 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) three. The daily accrual is the rate of interest that could be earned on a notional capital reinvestment at the 91-day Treasury rate.

The daily investor fee is an annualized amount equal to 1.65% 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 0.05%.

The company can accelerate the notes if their intraday indicative value is ever 15% or less of the prior day's closing indicative value.

The notes are listed on the NYSE Arca under the ticker symbol "UGAZ."

Credit Suisse Securities (USA) LLC is the agent. VLS Securities, LLC will receive all or a portion of the daily investor fee in consideration for its role in marketing and placing the securities under the VelocityShares brand.

The Cusip number is 22542D571.

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