Credit Suisse plans contingent coupon autocallables on three stocks

By Devika Patel

Knoxville, Tenn., June 21 – Credit Suisse AG, London Branch plans to price contingent coupon autocallable yield notes due Dec. 30, 2019 linked to the worst performing of the limited partnership units of Buckeye Partners LP, the common units of Energy Transfer Partners LP and the class P common stock of Kinder Morgan, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a quarterly contingent coupon at an expected annual rate of 15.25% if each stock closes at or above its coupon barrier level, expected to be about 60% of the initial level, on the observation date for that quarter. The exact coupon rate and coupon barrier level will be set at pricing.

Beginning Dec. 21, 2018, the notes will be called at par if each stock closes at or above its initial level on any quarterly trigger observation date.

The payout at maturity will be par unless any stock finishes below its knock-in level, expected to be about 60% of the initial level, in which case investors will lose 1% for each 1% decline of the worst performing stock from its initial level. The knock-in level will be set at pricing.

Credit Suisse Securities (USA) LLC is the agent.

The notes (Cusip: 22550WY68) will price on June 22 and settle on June 29.

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