Credit Suisse plans autocallable reverse convertibles tied to Facebook

By Angela McDaniels

Tacoma, Wash., Sept. 11 – Credit Suisse AG, London Branch plans to price contingent coupon autocallable reverse convertible securities due Dec. 20, 2018 linked to the class A common stock of Facebook, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Each month, the notes will pay a contingent coupon if Facebook stock closes at or above the knock-in level on the observation date for that month. The contingent coupon rate is expected to be 7.25% per year, the knock-in level is expected to be 75% of the initial share price, and both will be set at pricing.

The notes will be automatically called at par if Facebook shares close at or above the initial share price on March 15, 2018, June 15, 2018 or Sept. 17, 2018.

A knock-in event will occur if Facebook stock closes at or below the knock-in level on any day during the life of the notes.

The payout at maturity will be par unless a knock-in event occurs and Facebook shares 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 will price Sept. 15.

The Cusip number is 22549JKK5.

© 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.