Credit Suisse to sell contingent coupon callable yield notes on ETFs

By Devika Patel

Knoxville, Tenn., May 29 – Credit Suisse AG, London Branch plans to price contingent coupon callable yield notes due Dec. 7, 2020 linked to the Vaneck Vectors Gold Miners exchange-traded fund and the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a quarterly coupon at an expected annualized rate of 10.5% if each underlying closes at or above its coupon barrier level, expected to be 70% of its initial level, on the observation date for that quarter. The exact coupon and coupon barrier level will be set at pricing.

The notes are callable in whole but not in part at par plus any coupon on any coupon payment date beginning on Dec. 6, 2018.

The payout at maturity will be par unless either of the underlyings finishes below its knock-in level, expected to be 60% of its initial level, in which case investors will lose 1% for each 1% decline of the worse performing underlying from its initial level. The exact knock-in level will be set at pricing.

Credit Suisse Securities (USA) LLC is the agent.

The notes (Cusip: 22550WW60) are expected to price June 1 and settle June 6.

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