Credit Suisse to price contingent income notes linked to U.S. Steel

By Tali Rackner

Minneapolis, Aug. 7 – Credit Suisse AG plans to price autocallable contingent income securities due Aug. 14, 2020 linked to the common stock of United States Steel Corp., according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at the rate of 11.7% per year if the stock closes at or above its coupon barrier level, 50% of its initial share price, on the observation date for that quarter.

The notes will be automatically called at par of $10 plus the contingent coupon if U.S. Steel shares close at or above the initial share price on any quarterly observation date.

If the stock finishes at or above its 50% downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will be fully exposed to the stock’s decline from its initial share price.

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

The notes will price on Aug. 11 and settle on Aug. 16.

The Cusip number is 22549C741.

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