Published on 2/17/2020 in the Prospect News Structured Products Daily.
New Issue: Credit Suisse prices $1.28 million contingent coupon reverse convertibles linked to stocks
By Kiku Steinfeld
Chicago, Feb. 17 – Credit Suisse AG, London Branch priced $1.28 million of contingent coupon autocallable reverse convertible securities due Aug. 10, 2021 linked to the lowest performing of the common stocks of Micron Technology, Inc. and Hanesbrands Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If each stock closes at or above its coupon barrier, 60% of initial share price, on a quarterly observation date, then the notes will pay a contingent coupon plus any previously unpaid coupons at the rate of 17% per year.
The notes will be automatically called at par plus the coupon and any previously unpaid coupons if each stock closes at or above its initial share price on any quarterly observation date.
If the notes are not called, the payout at maturity will be par plus the coupon and any previously unpaid coupons unless any stock finishes below its knock-in price, 60% of its initial level, in which case investors will receive a number of shares of the lowest-performing stock equal to $1,000 divided by that stock’s initial share price or, at the issuer’s option, an amount in cash equal to the value of those shares.
Credit Suisse Securities (USA) LLC is the agent.
Issuer: | Credit Suisse AG, London Branch
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Issue: | Contingent coupon autocallable reverse convertible securities
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Underlying stocks: | Micron Technology, Inc. and Hanesbrands Inc.
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Amount: $1,279,000
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Maturity: | Aug. 10, 2021
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Coupon: | If each stock closes at or above coupon barrier on quarterly observation date, notes pay contingent coupon plus any previously unpaid coupons at rate of 17% per year
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Price: | Par
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Payout at maturity: | Par plus coupon and any previously unpaid coupons unless any stock finishes below knock-in price, in which case number of shares of lowest-performing stock equal to $1,000 divided by initial share price or, at issuer’s option, amount in cash equal to value of those shares
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Call: | Automatically at par plus coupon and any previously unpaid coupons if each stock closes at or above initial share price on any quarterly observation date
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Initial share prices: | $53.09 for Micron, $13.76 for Hanes
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Coupon barrier/knock-in levels: | $31.854 for Micron, $8.256 for Hanes; 60% of initial levels
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Pricing date: | Feb. 3
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Settlement date: | Feb. 10
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Agent: | Credit Suisse Securities (USA) LLC
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Fees: | 2.5%
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Cusip: | 22550MAJ8
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