Published on 12/13/2022 in the Prospect News Structured Products Daily.
New Issue: Credit Suisse sells $985,000 contingent coupon callable yield notes on bank stocks
By Kiku Steinfeld
Chicago, Dec. 13 – Credit Suisse AG, London Branch, priced $985,000 of contingent coupon callable yield notes due April 20, 2027 to the least performing of the stocks of Fifth Third Bancorp, 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 12.35% per year if each stock closes at or above its coupon barrier price, 70% 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.
Credit Suisse Securities (USA) LLC is the 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, Regions Financial Corp., PNC Financial Services Group, Inc.
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| Amount: | $985,000
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| Maturity: | April 20, 2027
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| Coupon: | 12.35% 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: | $39.01 for Fifth Third, $175.00 for PNC, $20.73 for Regions
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| Coupon barrier prices: | $27.307 for Fifth Third, $122.50 for PNC, $14.511 for Regions; 70% of initial prices
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| Knock-in prices: | $23.406 for Fifth Third, $105.00 for PNC, $12.438 for Regions,; 60% of initial prices
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| Pricing date: | April 14
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| Settlement date: | April 20
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| Agent: | Credit Suisse Securities (USA) LLC
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| Fees: | 3.71%
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| Cusip: | 22553PSE0
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