Published on 8/29/2018 in the Prospect News Structured Products Daily.
New Issue: Credit Suisse sells $7.5 million 19.25% contingent coupon callables tied to five tech stocks
By Wendy Van Sickle
Columbus, Ohio, Aug. 29 – Credit Suisse AG, London Branch priced $7.5 million of contingent coupon callable yield notes due Aug. 30, 2021 linked to the least performing of the common stocks of Facebook, Inc., Apple Inc., Amazon.com, Inc., Alphabet Inc. and Microsoft Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 19.25% if each underlying stock closes at or above its 70% coupon barrier on the observation date for that quarter.
The notes are callable at par on any interest payment date beginning Feb. 28, 2019.
The payout at maturity will be par unless any stock ever closes below its 70% knock-in level during the life of the notes, in which case investors will be fully exposed to any losses of the worst performing stock.
Credit Suisse Securities (USA) LLC is the underwriter.
| Issuer: | Credit Suisse AG, London Branch
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| Issue: | Contingent coupon callable yield notes
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| Underlying assets: | Facebook, Inc., Apple Inc., Amazon.com, Inc., Alphabet Inc. and Microsoft Corp.
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| Amount: | $7.5 million
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| Maturity: | Aug. 30, 2021
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| Coupon: | 19.25% annualized, payable quarterly if each stock closes at or above 70% coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any stock ever closes below 70% knock-in level, in which case 1% loss per 1% decline of worst performing stock
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| Call option: | At par on any interest payment date beginning Feb. 28, 2019
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| Initial prices: | $174.654 for Facebook, $216.16 for Apple, $1,905.39 for Amazon, $1,236.75 for Alphabet, $108.40 for Microsoft
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| Barrier/knock-ins: | $122.2515 for Facebook, $151.312 for Apple, $1,333.773 for Amazon, $865.725 for Alphabet, $75.88 for Microsoft; 70% of initial levels
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| Pricing date: | Aug. 24
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| Settlement date: | Aug. 29
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| Agent: | Credit Suisse Securities (USA) LLC
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| Fees: | 0.6%
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| Cusip: | 22551L5R7
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