Credit Suisse plans step-up contingent coupon notes linked to indexes

By Angela McDaniels

Tacoma, Wash., June 5 – Credit Suisse AG, London Branch plans to price step-up contingent coupon callable yield notes due June 30, 2027 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

Each month, the notes will pay a contingent coupon if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that month. The contingent coupon rate will be 7% per year in years one through five, 8% per year in years six through eight and 12% per year in years nine and 10.

The payout at maturity will be par unless either index finishes below its knock-in level, 50% of its initial level, in which case investors will be fully exposed to the losses of the worse-performing index.

Beginning June 29, 2018, the notes will be callable at par quarterly.

Credit Suisse Securities (USA) LLC is the agent.

The notes will price June 27.

The Cusip number is 22550B6X6.

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