Credit Suisse eyes autocallable contingent income notes on U.S. Steel

By Devika Patel

Knoxville, Tenn., Sept. 1 – Credit Suisse AG plans to price autocallable contingent income securities due Sept. 13, 2018 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 an annual rate of 10.75% if U.S. Steel shares close at or above the coupon barrier level, 55% of the initial share price, on the determination date for that quarter.

The notes will be automatically called at par plus the contingent coupon if U.S. Steel shares close at or above the initial share price on any determination date beginning Dec. 8, 2017.

If the final share price is greater than or equal to the 55% downside threshold level, the payout at maturity will be par plus the final contingent interest payment. Otherwise, investors will lose 1% for each 1% decline of the stock from its initial level.

Credit Suisse Securities (USA) LLC is the agent.

The notes (Cusip: 22549D137) will price on Sept. 8 and settle on Sept. 13.

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