Credit Suisse plans to price reverse convertibles on Facebook stock

By Devika Patel

Knoxville, Tenn., Sept. 22 – Credit Suisse AG, London Branch, plans to price 8.25% to 9.25% reverse convertible securities due Oct. 5, 2017 linked to Facebook, Inc. class A common shares, according to a 424B2 filing with the Securities and Exchange Commission. The coupon will be set at pricing.

Interest is payable quarterly and the exact coupon will be set at pricing.

The payout at maturity will be par unless Facebook shares close at or below the knock-in price, which is expected to be about 80% of the initial share price and will be set at pricing, on any day during the life of the notes and finish below the initial share price, in which case investors will receive a number of Facebook shares equal to $1,000 divided by the initial share price or, at the issuer’s option, an amount in cash equal to the value of those shares.

Credit Suisse Securities (USA) LLC is the agent.

The notes (Cusip: 22549JCD0) will price on Sept. 30 and settle on Oct. 5.

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