Credit Suisse plans trigger phoenix callables on Euro Stoxx, S&P indexes

By Jennifer Chiou

New York, July 31 – Credit Suisse AG plans to price trigger phoenix callable optimization securities due Aug. 7, 2024 linked to the Euro Stoxx 50 index and the S&P 500 index, according to an FWP with the Securities and Exchange Commission.

If each index finishes at or above its coupon barrier, 50% of its initial level, on a quarterly observation date, the issuer will pay a contingent coupon at the rate of 5.175% per year until Aug. 3, 2018, then 7.175% until Aug. 4, 2021 and finally 9.175% per year until maturity.

A trigger event will occur if either index closes below its 50% trigger level on the Aug. 1, 2024 final valuation date.

If a trigger event does not occur and the final level of each index is greater than or equal to its respective coupon barrier, the payout at maturity will be par plus the coupon.

If a trigger event occurs, investors will be fully exposed to the decline of the least-performing index.

The notes are callable at par plus the coupon on any quarterly observation date after one year.

The notes (Cusip: 22547QRD0) are expected to price on Aug. 1 and settle on Aug. 6.

UBS Financial Services Inc. is the underwriter.

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