Credit Suisse plans contingent coupon callable yield notes on indexes

By Marisa Wong

Madison, Wis., Aug. 5 - Credit Suisse AG plans to price contingent coupon callable yield notes due Sept. 4, 2018 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a quarterly coupon of 6.5% to 7% per year if each index closes at or above its barrier level on the observation date for that period. Otherwise, no coupon will be paid that quarter. The barrier level will be about 65% of the index's initial level.

The notes will be callable at par plus the contingent coupon, if any, on any interest payment beginning March 4, 2014.

The payout at maturity will be par unless either index finishes at or below its knock-in level, in which case investors will be fully exposed to the decline of the worst-performing index from its initial level. The knock-in level is expected to be 65% of the initial level.

The notes (Cusip: 22547Q6X9) are expected to price Aug. 29 and settle Sept. 4.

Credit Suisse Securities (USA) LLC is the agent.

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