Credit Suisse plans contingent income notes linked to Amazon, Facebook

By Angela McDaniels

Tacoma, Wash., July 31 – Credit Suisse AG plans to price autocallable contingent income securities due Aug. 8, 2019 linked to the worst performing of the common stock of Amazon.com Inc. and the class A common stock of Facebook Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at the rate of 11% per year if each stock closes at or above its downside threshold level, 75% of its initial share price, on the observation date for that quarter.

The notes will be automatically called at par of $10 plus the contingent coupon if each stock closes at or above its initial share price on any quarterly observation date.

If each stock finishes at or above its downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will be fully exposed to the lesser-performing stock’s decline from its initial share price.

Credit Suisse Securities (USA) Inc. is the agent. Morgan Stanley Smith Barney LLC is acting as distributor.

The notes will price Aug. 4.

The Cusip number is 22549C642.

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