Credit Suisse to sell contingent coupon callable yield notes on funds

By Devika Patel

Knoxville, Tenn., Oct. 13 – Credit Suisse AG, London Branch plans to price contingent coupon callable yield notes due Oct. 27, 2020 linked to the SPDR S&P Biotech exchange-traded fund and the Technology 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 between 10% and 11% if each underlying closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that quarter. The exact coupon will be set at pricing.

The notes are callable in whole but not in part at par on any of the coupon payment dates beginning on April 27, 2018.

The payout at maturity will be par unless either of the underlyings finish below the knock-in level, 70% of its initial level, in which case investors will lose 1% for each 1% decline of the worse performing underlying from its initial level.

Credit Suisse Securities (USA) LLC is the agent.

The notes (Cusip: 22550BKK8) are expected to price Oct. 20 and settle Oct. 27.

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