Published on 4/24/2014 in the Prospect News Structured Products Daily.
New Issue: Credit Suisse prices $8.42 million relative Stars on stock basket vs. T-bond fund
By Marisa Wong
Madison, Wis., April 24 - Credit Suisse AG, London Branch priced $8.42 million of 0% relative value Strategic Accelerated Redemption Securities due May 1, 2015 linked to the performance of a basket of three equally weighted financial stocks versus the iShares 20+ Year Treasury Bond exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The underlying basket companies are Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co.
The notes will be called at par of $10 plus an annualized premium of 11.87% if the stock basket performs at or above the level of the T-bond fund on any of three observation dates.
The payout at maturity will be par unless the stock basket finishes below the T-bond fund, in which case investors will be exposed to any losses.
BofA Merrill Lynch is the agent.
| Issuer: | Credit Suisse AG, London Branch
|
| Issue: | Relative value Strategic Accelerated Redemption Securities
|
| Underlyings: | Basket of Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co., equally weighted, vs. iShares 20+ Year Treasury Bond ETF
|
| Amount: | $8,416,370
|
| Maturity: | May 1, 2015
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Par unless stock basket finishes below T-bond fund, in which case investors will be exposed to any losses
|
| Call: | At par plus 11.87% per year if stock basket performs at or above level of T-bond fund on Oct. 24, 2014, Jan. 23, 2015 or April 24, 2015
|
| Initial prices: | $48.02 for Citigroup, $55.81 for JPMorgan, $49.23 for Wells, $110.33 for ETF
|
| Pricing date: | April 22
|
| Settlement date: | April 29
|
| Underwriter: | BofA Merrill Lynch
|
| Fees: | 1.25%
|
| Cusip: | 22545F458
|
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