Published on 6/18/2019 in the Prospect News Structured Products Daily.
New Issue: Credit Suisse prices $894,000 contingent coupon reverse convertibles linked to Alcoa
By Angela McDaniels
Tacoma, Wash., June 18 – Credit Suisse AG, London Branch priced $894,000 of contingent coupon autocallable reverse convertible securities due June 21, 2021 linked to the common stock of Alcoa Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a coupon at the rate of 10% per year if Alcoa stock closes at or above the knock-in price, 57.5% of the initial share price, on the observation date for that quarter.
Beginning Dec. 16, 2019, the notes will be automatically called at par if Alcoa shares close at or above the initial share price on any quarterly trigger observation date.
The payout at maturity will be par unless Alcoa shares close below the knock-in price on any day during the life of the notes and finish below the initial share price, in which case investors will receive a number of Alcoa shares equal to $1,000 divided by the initial share price or, at the issuer’s option, an amount in cash equal to the value of those shares.
Credit Suisse Securities (USA) LLC is the agent.
| Issuer: | Credit Suisse AG, London Branch
|
| Issue: | Contingent coupon autocallable reverse convertible securities
|
| Underlying stock: | Alcoa Corp. (Symbol: AA)
|
| Amount: | $894,000
|
| Maturity: | June 21, 2021
|
| Coupon: | 10% per year, payable quarterly if stock closes at or above knock-in price on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless stock closes below knock-in price on any day during life of notes and finishes below initial share price, in which case number of Alcoa shares equal to $1,000 divided by initial share price or, at issuer’s option, amount in cash equal to value of those shares
|
| Call: | Beginning Dec. 16, 2019, automatically at par if Alcoa shares close at or above initial share price on any quarterly trigger observation date
|
| Initial share price: | $21.73
|
| Knock-in price: | $12.49475, 57.5% of initial share price
|
| Pricing date: | June 14
|
| Settlement date: | June 19
|
| Agent: | Credit Suisse Securities (USA) LLC
|
| Fees: | 2.95%
|
| Cusip: | 22549JP38
|
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