Credit Suisse to sell contingent coupon callable yield notes on funds

By Devika Patel

Knoxville, Tenn., Oct. 10 – Credit Suisse AG, London Branch plans to price contingent coupon callable yield notes due Oct. 26, 2021 linked to the SPDR S&P Biotech exchange-traded fund and the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a semiannual coupon at an annualized rate of between 9.75% and 10.75% if each fund closes at or above its coupon barrier level, 60% of its initial level, on the observation date for that period. 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 May 13, 2019.

The payout at maturity will be par unless either of the funds finish below the knock-in level, 60% of its initial level, in which case investors will lose 1% for each 1% decline of the worse performing fund from its initial level.

Credit Suisse Securities (USA) LLC is the agent.

The notes (Cusip: 22551LE55) are expected to price Oct. 19 and settle Oct. 26.

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