Published on 9/26/2018 in the Prospect News Structured Products Daily.
New Issue: Credit Suisse sells $4.42 million contingent coupon callable yield notes on ETFs
By Wendy Van Sickle
Columbus, Ohio, Sept. 26 – Credit Suisse AG, London Branch priced $4.42 million of contingent coupon callable yield notes due Sept. 28, 2021 linked to the lesser performing of the SPDR S&P Biotech ETF and the SPDR S&P Oil & Gas Exploration & Production ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at an annual rate of 11% if each fund closes at or above its coupon barrier, 60% of its initial level, on the observation date for that quarter.
Starting on March 15, 2019, Credit Suisse may redeem the notes at par on any quarterly contingent coupon payment date.
The payout at maturity will be par unless either fund closes below its 60% knock-in level, in which case investors will be fully exposed to any losses of the least-performing fund.
Credit Suisse Securities (USA) LLC is the agent.
Issuer: | Credit Suisse AG, London Branch
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Issue: | Contingent coupon callable yield notes
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Underlying funds: | SPDR S&P Biotech ETF and SPDR S&P Oil & Gas Exploration & Production ETF
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Amount: | $4,422,000
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Maturity: | Sept. 28, 2021
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Coupon: | 11% per year, payable quarterly if each fund closes at or above its coupon barrier on the quarterly observation date
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Price: | Par
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Payout at maturity: | Par unless either fund finishes below its 60% knock-in level, in which case full exposure to the losses of the least-performing fund
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Call: | Starting March 15, 2019, on any contingent coupon payment date at par
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Initial prices: | $95.54 for biotech ETF, $42.49 for oil and gas ETF
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Coupon barrier levels: | $57.324 for biotech ETF, $24.494 for oil and gas ETF; 60% of initial levels
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Knock-in levels: | $57.324 for biotech ETF, $24.494 for oil and gas ETF; 60% of initial levels
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Pricing date: | Sept. 21
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Settlement date: | Sept. 28
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Agent: | Credit Suisse Securities (USA) LLC
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Fees: | 0.4%
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Cusip: | 22551LAC4
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