Published on 11/18/2021 in the Prospect News Structured Products Daily.
New Issue: Credit Suisse sells $1.57 million contingent coupon callable yield notes on three stocks
By William Gullotti
Buffalo, N.Y., Nov. 18 – Credit Suisse AG, London Branch, priced $1.57 million of contingent coupon callable yield notes due Aug. 12, 2024 to the least performing of the stocks of Bank of America Corp., McDonald’s Corp. and Royal Caribbean Cruises Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent monthly coupon at the rate of 17.24% per year if each stock closes at or above its coupon barrier price, 70% of its initial price, on the related observation date.
The notes may be called at par plus any contingent coupon due at the issuer’s option on any quarterly early redemption date after six months.
The payout at maturity will be par plus the final coupon if each stock finishes at or above its coupon barrier.
If the worst performer finishes below the coupon barrier but at or above its 60% knock-in price, the payout at maturity will be par. Otherwise, in which case investors will be exposed to the decline of the worst performer from its initial price.
Credit Suisse Securities (USA) LLC is the placement agent.
| Issuer: | Credit Suisse AG, London Branch
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| Issue: | Contingent coupon callable yield notes
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| Underlying stocks: | Bank of America Corp., McDonald’s Corp., Royal Caribbean Cruises Ltd.
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| Amount: | $1,571,000
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| Maturity: | Aug. 12, 2024
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| Coupon: | 17.24% per year, payable monthly if each underlying asset closes at or above its coupon barrier price on related observation date
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| Price: | Par
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| Payout at maturity: | If all stocks finish at or above coupon barrier, par plus final coupon; if worst performer finishes below coupon barrier but at or above its knock-in price, par; otherwise, 1% loss for every 1% decline of worst performer from initial level
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| Call: | Par plus any coupon due on any quarterly early redemption date after six months
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| Initial prices: | $40.15 for BofA, $236.26 for McDonald’s, $78.92 for Cruises
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| Coupon barrier prices: | $28.105 for BofA, $165.382 for McDonald’s, $55.244 for Cruises; 70% of initial prices
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| Knock-in prices: | $24.09 for BofA, $141.756 for McDonald’s, $47.352 for Cruises; 60% of initial prices
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| Pricing date: | Aug. 6
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| Settlement date: | Aug. 11
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| Placement agent: | Credit Suisse Securities (USA) LLC
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| Fees: | 3.5%
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| Cusip: | 22552XRU9
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