By Angela McDaniels
Tacoma, Wash., April 23 – Credit Suisse AG, Nassau Branch priced another $3.95 million of 0% VelocityShares 3x Long Silver ETNs due Oct. 14, 2031 linked to the S&P GSCI Silver Index Excess Return index, according to 424B2 filings with the Securities and Exchange Commission.
The $112.5 million principal amount of additional notes priced in two tranches: $62.5 million principal amount at 3.5107 for proceeds of $2.19 million and $50 million principal amount at 3.51136 for proceeds of $1.76 million.
The original $5 million of notes priced on Oct. 14, 2011.
The payout at maturity will equal the closing indicative value of the notes on Oct. 8, 2031.
On Aug. 30, 2013, the company implemented a 1-for-10 reverse split of the notes, increasing the face amount to $500 from $50, and changed the Cusip number from 22542D662.
The closing indicative value of the notes on the inception date was $500. On subsequent days, it equals (a) (i) the closing indicative value on the preceding day times (ii) the daily ETN performance of the notes on that day minus (b) the daily investor fee.
The closing indicative value will never be less than zero. If the intraday indicative value of the notes is zero or less at any time or the closing indicative value is equal to zero, the closing indicative value of the notes on that day and on all following days will be zero.
The daily ETN performance equals (a) one plus (b) the daily accrual plus (c) the index return over the previous day’s closing index level times three. The daily accrual is the rate of interest that could be earned on a notional capital reinvestment at the 91-day Treasury rate.
The daily investor fee is an annualized amount equal to 1.65% of the closing indicative value on the preceding day.
The notes are putable at a minimum of 25,000 notes. Holders will receive the closing indicative value minus an early redemption charge of 0.05%.
The company can accelerate the notes if their intraday indicative value is ever 15% or less of the prior day’s closing indicative value.
The notes are listed on the NYSE Arca under the ticker symbol “USLV.”
Credit Suisse Securities (USA) LLC is the agent. VLS Securities, LLC will receive all or part of the daily investor fee in consideration for its role in marketing and placing the securities under the VelocityShares brand.
| Issuer: | Credit Suisse AG, Nassau Branch
|
| Issue: | VelocityShares 3x Long Silver ETN
|
| Underlying index: | S&P GSCI Silver Index Excess Return
|
| Amount: | $5,937,545,027.50, increased from original $5 million
|
| Proceeds: | $3,949,868 for latest $112.5 million
|
| Maturity: | Oct. 14, 2031
|
| Coupon: | 0%
|
| Prices: | Par of $500 for original $5 million; in latest add-ons, 3.5107 for $62.5 million and 3.51136 for $50 million
|
| Payout at maturity: | Amount equal to closing indicative value of notes on Feb. 2, 2032
|
| Closing indicative value: | Closing indicative value on preceding day times daily ETN performance on that day minus daily investor fee; daily ETN performance equals one plus daily accrual plus three times index’s return over previous day’s closing level
|
| Put option: | Subject to minimum of 25,000 notes and 0.05% early redemption charge
|
| Acceleration: | If intraday indicative value of notes on any day is 15% or less of prior day’s closing indicative value
|
| Pricing date: | Feb. 7, 2012 for original issue; April 22 for latest add-ons
|
| Settlement date: | Feb. 10, 2012 for original issue; April 27 for latest add-ons
|
| Agent: | Credit Suisse Securities (USA) LLC
|
| Fees: | None
|
| Listing: | NYSE Arca: USLV
|
| Cusip: | 22539T597
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
