Credit Suisse eyes contingent coupon autocalls on Facebook, Alphabet

By Devika Patel

Knoxville, Tenn., Jan. 8 – Credit Suisse AG, London Branch, plans to price contingent coupon autocallable yield notes due Jan. 18, 2019 linked to the worst performing of the class A common stocks of Facebook, Inc. and Alphabet Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an expected annual rate of 10.75% if each stock closes at or above its coupon barrier level, expected to be about 80% of the initial level, on the observation date for that quarter. The exact coupon rate and barrier level will be set at pricing.

The notes will be called at par if each stock closes at or above its initial level on April 13, 2018, July 13, 2018 or Oct. 15, 2018.

The payout at maturity will be par unless any stock finishes below its knock-in level, expected to be about 80% of the initial level, in which case investors will receive a number of shares of the worst-performing stock equal to the principal divided by that stock’s initial share price or, at the issuer’s option, an amount in cash equal to the value of those shares. The exact knock-in level will be set at pricing.

Credit Suisse Securities (USA) LLC is the agent.

The notes (Cusip: 22550W5U7) will price on Jan. 12 and settle on Jan. 18.

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