Published on 2/20/2019 in the Prospect News Structured Products Daily.
New Issue: Credit Suisse sells $5.25 million contingent coupon autocallable yield notes on Tesla
By Wendy Van Sickle
Columbus, Ohio, Feb. 20 – Credit Suisse AG, London Branch, priced $5.25 million of contingent coupon autocallable yield notes due March 3, 2020 linked to Tesla, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If Tesla stock closes at or above the coupon barrier level, 60% of the initial share price, on a quarterly observation date, the notes will pay a contingent payment for that quarter at a rate of 27.05% per year.
If the closing share price is greater than or equal to the initial share price on May 30, 2019, Aug. 29, 2019 or Nov. 29, 2019, the notes will be automatically redeemed at par plus the contingent payment.
If the notes are not called, the payout at maturity will be par unless the shares finish below the 60% knock-in price, in which case investors will lose 1% for each 1% decline of the stock or receive par if the stock finishes flat or gains.
J.P. Morgan Securities LLC is the placement agent.
| Issuer: | Credit Suisse AG, London Branch
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| Issue: | Contingent coupon autocallable yield notes
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| Underlying stock: | Tesla, Inc.
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| Amount: | $5.25 million
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| Maturity: | March 3, 2020
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| Contingent payment: | 27.05% per year, payable quarterly if Tesla stock closes at or above coupon barrier level on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par, unless shares finish below 60% knock-in price, in which case 1% loss for each 1% decline
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| Call: | Automatically at par plus contingent payment if closing share price is greater than or equal to initial share price on May 30, 2019, Aug. 29, 2019 or Nov. 29, 2019
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| Initial share price: | $303.77
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| Coupon barrier/knock-in price: | $182.26, 60% of initial share price
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| Pricing date: | Feb. 15
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| Settlement date: | Feb. 21
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| Placement agents: | J.P. Morgan Securities LLC
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| Fees: | 0.75%
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| Cusip: | 22551LXS4
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