Published on 8/30/2018 in the Prospect News Structured Products Daily.
New Issue: Credit Suisse sells $700,000 contingent coupon callable yield notes on ETFs
By Wendy Van Sickle
Columbus, Ohio, Aug. 30 – Credit Suisse AG, London Branch priced $700,000 of contingent coupon callable yield notes due May 29, 2020 linked to the lesser performing of the Financial Select Sector SPDR fund and the Energy Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at an annual rate of 8.5% if each fund closes at or above its coupon barrier, 70% of its initial level, on the observation date for that quarter.
Starting on Feb. 28, 2019, Credit Suisse may redeem the notes at par on any quarterly contingent coupon payment date.
The payout at maturity will be par unless either fund closes below its 60% knock-in level, in which case investors will be fully exposed to any losses of the least-performing fund.
Credit Suisse Securities (USA) LLC is the agent.
| Issuer: | Credit Suisse AG, London Branch
|
| Issue: | Contingent coupon callable yield notes
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| Underlying funds: | SPDR S&P Regional Banking ETF and SPDR S&P Oil & Gas Exploration and Production ETF
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| Amount: | $700,000
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| Maturity: | May 29, 2020
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| Coupon: | 8.5% per year, payable quarterly if each fund closes at or above its coupon barrier on the quarterly observation date
|
| Price: | Par
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| Payout at maturity: | Par unless either fund finishes below its 60% knock-in level, in which case full exposure to the losses of the least-performing fund
|
| Call: | Starting Feb. 28, 2019, on any contingent coupon payment date at par
|
| Initial prices: | $63.42 for Regional Banking, $42.15 for Oil & Gas
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| Coupon barrier levels: | $44.394 for Regional Banking, $29.505 for Oil & Gas; 70% of initial levels
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| Knock-in levels: | $38.052 for Regional Banking, $25.29for Oil & Gas; 60% of initial levels
|
| Pricing date: | Aug. 27
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| Settlement date: | Aug. 30
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| Agent: | Credit Suisse Securities (USA) LLC
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| Fees: | 0.45%
|
| Cusip: | 22551L5M8
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