Published on 8/25/2017 in the Prospect News Structured Products Daily.
New Issue: Credit Suisse sells $2.1 million contingent coupon autocallables on biotech, utilities funds
By Wendy Van Sickle
Columbus, Ohio, Aug. 25 – Credit Suisse AG, London Branch priced $2.1 million of contingent coupon autocallable yield notes due Feb. 28, 2019 linked to the lowest performing of the SPDR S&P Biotech exchange-traded fund and the Utilities Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annualized rate of 7% if each ETF closes at or above its barrier level, 67% of its initial level, on a quarterly observation date.
The notes will be called at par if each fund closes above its initial level on any quarterly observation date.
The payout at maturity will be par unless either ETF finishes below its 57% knock-in level, in which case investors will be exposed to any losses of the lesser-performing ETF.
Credit Suisse Securities (USA) LLC is the agent.
| Issuer: | Credit Suisse AG, London Branch
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| Issue: | Contingent coupon autocallable yield notes
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| Underlying ETFs: | Utilities Select Sector SPDR fund and SPDR S&P Biotech exchange-traded fund
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| Amount: | $2,099,000
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| Maturity: | Feb. 28, 2019
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| Coupon: | 7% per year, payable quarterly if each ETF closes at or above its barrier level on quarterly observation date
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| Price: | Par
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| Payout at maturity: | Par unless either ETF finishes below its knock-in level, in which case investors will be exposed to any losses of lesser-performing ETF
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| Call option: | Automatically at par if each fund closes above its initial level on any quarterly observation date
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| Initial levels: | $55.00 for Utilities fund, $76.97 for Biotech ETF
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| Barrier levels: | $36.85 for Utilities fund, $51.5699 for Biotech ETF; 67% of initial levels
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| Knock-in levels: | $31.35 for Utilities fund, $43.8729 for Biotech ETF; 57% of initial levels
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| Pricing date: | Aug. 23
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| Settlement date: | Aug. 28
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| Agent: | Credit Suisse Securities (USA) LLC
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| Fees: | 0.6%
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| Cusip: | 22550BFV0
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