Credit Suisse plans 6.5% autocallable reverse convertibles on Apple

By Toni Weeks

San Luis Obispo, Calif., July 24 – Credit Suisse AG plans to price 6.5% autocallable reverse convertible securities due Nov. 2, 2015 linked to Apple Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable monthly.

A knock-in event will occur if the stock price closes at or below the knock-in price, 75% of the initial share price, on any trading day during the life of the notes.

The notes will be called at par plus accrued interest if the stock closes at or above the initial share price on any of three trigger observation dates, which are Jan. 28, 2015, April 28, 2015 and July 29, 2015.

If the notes are not called and a knock-in event does not occur, or if it does but the final share price is greater than or equal to the initial price, the payout at maturity will be par. If a knock-in event occurs and the final share price is less than the initial price, investors will receive a number of shares of Apple stock equal to $1,000 divided by the initial price or, at the issuer’s option, the cash value of those shares.

The exact terms will be set at pricing.

Credit Suisse Securities (USA) LLC is the agent.

The notes will price July 29 and settle Aug. 1.

The Cusip number is 22547QR32.

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