Published on 1/20/2020 in the Prospect News Structured Products Daily.
New Issue: Credit Suisse sells $5.3 million callable contingent income notes on tech stocks
By Kiku Steinfeld
Chicago, Jan. 20 – Credit Suisse AG priced $5.3 million of callable contingent income securities due Jan. 21, 2022 linked to the class A common stock of Facebook, Inc., the common stock of Amazon.com, Inc. and the class A common stock of Alphabet, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 10.8% if each stock closes at or above the coupon barrier level, 65% of the initial level, on the determination date for that quarter.
The notes are callable at par of $10 plus any coupon on any quarterly determination date.
If the notes are not called and each stock finishes at or above the 65% downside threshold level, the payout at maturity will be par plus the final coupon. Otherwise, investors will lose 1% for each 1% decline of the worst performing stock.
Credit Suisse Securities (USA) LLC is the agent and Morgan Stanley Smith Barney LLC is the distributor.
| Issuer: | Credit Suisse AG
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| Issue: | Callable contingent income securities
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| Underlying stock: | Class A common stock of Facebook, Inc. (Nasdaq: FB), common stock of Amazon.com, Inc. (Nasdaq: AMZN), class A common stock of Alphabet, Inc. (Nasdaq: GOOGL)
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| Amount: | $5,300,000
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| Maturity: | Jan. 21, 2022
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| Coupon: | 10.8%, payable quarterly if each stock closes at or above coupon barrier level on determination date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If each stock finishes at or above 65% downside threshold level, par plus final coupon; otherwise, 1% loss for each 1% decline of laggard stock
|
| Call option: | At par plus any coupon on any quarterly determination date
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| Initial levels: | $221.15 for Facebook, $1,862.02 for Amazon, $1,439.20 for Alphabet
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| Coupon barrier/downside threshold levels: | $143.75 for Facebook, $1,210.31 for Amazon, $935.48 for Alphabet, 65% of initial prices
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| Pricing date: | Jan. 15
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| Settlement date: | Jan. 21
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| Agent: | Credit Suisse Securities (USA) LLC
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| Distributor: | Morgan Stanley Smith Barney LLC
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| Fees: | 2%
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| Cusip: | 22550N198
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