Published on 10/26/2018 in the Prospect News Structured Products Daily.
New Issue: Credit Suisse sells $1.92 million contingent coupon callable yield notes on ETFs
By Wendy Van Sickle
Columbus, Ohio, Oct. 26 – Credit Suisse AG, London Branch priced $1.92 million of contingent coupon callable yield notes due Oct. 26, 2021 linked to the lesser performing of the SPDR S&P Biotech ETF and the Technology Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at an annual rate of 10.6% if each fund closes at or above its coupon barrier, 70% of its initial level, on the observation date for that quarter.
Starting on May 13, 2019, Credit Suisse may redeem the notes at par on any quarterly contingent coupon payment date.
The payout at maturity will be par unless either fund closes below its 70% knock-in level, in which case investors will be fully exposed to any losses of the least-performing fund.
Credit Suisse Securities (USA) LLC is the agent.
| Issuer: | Credit Suisse AG, London Branch
|
| Issue: | Contingent coupon callable yield notes
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| Underlying funds: | SPDR S&P Biotech ETF and Technology Select Sector SPDR fund
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| Amount: | $1,919,000
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| Maturity: | Oct. 26, 2021
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| Coupon: | 10.6% per year, payable quarterly if each fund closes at or above its coupon barrier on the quarterly observation date
|
| Price: | Par
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| Payout at maturity: | Par unless either fund finishes below its 70% knock-in level, in which case full exposure to the losses of the least-performing fund
|
| Call: | Starting May 13, 2019, on any contingent coupon payment date at par
|
| Initial prices: | $85.42 for biotech ETF, $70.01 for technology fund
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| Coupon barrier levels: | $59.794 for biotech ETF, $49.007 for technology fund; 70% of initial levels
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| Knock-in levels: | $59.794 for biotech ETF, $49.007 for technology fund; 70% of initial levels
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| Pricing date: | Oct. 19
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| Settlement date: | Oct. 26
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| Agent: | Credit Suisse Securities (USA) LLC
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| Fees: | 0%
|
| Cusip: | 22551LE89
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