Published on 11/19/2021 in the Prospect News Structured Products Daily.
New Issue: Credit Suisse sells $1.86 million contingent coupon callable yield notes on banking stocks
By William Gullotti
Buffalo, N.Y., Nov. 19 – Credit Suisse AG, London Branch, priced $1.86 million of contingent coupon callable yield notes due Nov. 19, 2026 to the least performing of the stocks of Fifth Third Bancorp, KeyCorp, Regions Financial Corp. and PNC Financial Services Group, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at the rate of 10.5% per year if each stock closes at or above its coupon barrier price, 75% of its initial price, on the related observation date.
The notes may be called at par plus any contingent coupon due at the issuer’s option on any quarterly early redemption date.
The payout at maturity will be par plus the final coupon if each stock finishes at or above its coupon barrier.
If the worst performer finishes below the coupon barrier but at or above its 60% knock-in price, the payout at maturity will be par. Otherwise, in which case investors will be exposed to the decline of the worst performer from its initial price.
Incapital LLC is the placement agent.
| Issuer: | Credit Suisse AG, London Branch
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| Issue: | Contingent coupon callable yield notes
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| Underlying stocks: | Fifth Third Bancorp, KeyCorp, Regions Financial Corp., PNC Financial Services Group, Inc.
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| Amount: | $1,859,000
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| Maturity: | Nov. 19, 2026
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| Coupon: | 10.5% per year, payable quarterly if each underlying asset closes at or above its coupon barrier price on related observation date
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| Price: | Par
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| Payout at maturity: | If all stocks finish at or above coupon barrier, par plus final coupon; if worst performer finishes below coupon barrier but at or above its knock-in price, par; otherwise, 1% loss for every 1% decline of worst performer from initial level
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| Call: | Par plus any coupon due on any quarterly early redemption date
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| Initial prices: | $44.83 for Fifth Third, $23.92 for KeyCorp, $24.25 for Regions, $205.53 for PNC
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| Coupon barrier prices: | $33.6225 for Fifth Third, $18.1875 for KeyCorp, $13.279 for Regions, $154.1475 for PNC; 75% of initial prices
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| Knock-in prices: | $26.898 for Fifth Third, $14.352 for KeyCorp, $14.55 for Regions, $123.318 for PNC; 60% of initial prices
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| Pricing date: | Nov. 16
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| Settlement date: | Nov. 19
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| Placement agent: | Incapital LLC
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| Fees: | 3.8%
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| Cusip: | 22553P3W7
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