New Issue: Credit Suisse sells $10 million autocallable fixed-income securities on Microsoft

By Kiku Steinfeld

Chicago, June 5 – Credit Suisse AG, London Branch priced $10 million of 7.46% autocallable fixed-income securities due Dec. 27, 2020 linked to Microsoft Corp., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable quarterly.

Credit Suisse will call the notes at par of $1,000 plus a coupon if the shares close above their initial level on Aug. 27.

If the notes are not called and the final level of the stock is greater than or equal to its buffer level, 80% of its initial level, the payout will be par. Otherwise, investors will lose 1.25% for every 1% decline of the stock, and the redemption amount will equal the physical delivery amount (a number of shares of the stock rounded down to the nearest whole number and equal to the product of $1,000 divided by the buffer level and the share adjustment factor, which is 1) plus cash in lieu of any fractional shares, subject to the issuer’s election to pay cash instead of shares.

Credit Suisse Securities (USA) LLC is the agent. Morgan Stanley Smith Barney LLC is a distributor.

Issuer:	Credit Suisse AG, London Branch
Issue:	Autocallable fixed-income securities
Underlying shares:	Microsoft Corp.
Amount:	$10,000,000
Maturity:	Dec. 27, 2020
Coupon:	7.46%, payable quarterly
Price:	Par of $1,000
Payout at maturity:	If the notes are not called and the final level of the stock is greater than or equal to its buffer level, par; otherwise, investors will lose 1.25% for every 1% decline of the stock, and the redemption amount will equal the physical delivery amount (a number of shares of the stock rounded down to the nearest whole number and equal to the product of $1,000 divided by the buffer level and the share adjustment factor, which is 1) plus cash in lieu of any fractional shares, subject to the issuer’s election to pay cash instead of shares
Call:	Automatically at par plus coupon if shares close above initial level on Aug. 27
Initial level:	$181.57
Buffer level:	$145.26; 80% of initial level
Pricing date:	May 27
Settlement date:	June 1
Agent:	Credit Suisse Securities (USA) LLC
Distributor:	Morgan Stanley Smith Barney LLC
Fees:	0.2%
Cusip:	22552W5Q4

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