Credit Suisse plans contingent coupon callable yield notes on indexes

By Devika Patel

Knoxville, Tenn., June 16 – Credit Suisse AG, London branch, plans to price contingent coupon callable yield notes due Dec. 28, 2020 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 at an expected annualized rate of between 8.5% and 9% if each index closes above its coupon barrier level, expected to be 75% of its initial level, on the observation date for that period. The exact coupon and barrier will be set at pricing.

The notes are callable in whole but not in part at par on any coupon payment date before the maturity date beginning on Dec. 28, 2017.

The payout at maturity will be par unless either of the indexes finishes below its knock-in level, expected to be 75%, in which case investors will lose 1% for each 1% decline of the worse performing index. The exact knock-in level will be set at pricing.

Credit Suisse Securities (USA) LLC is the agent.

The notes (Cusip: 22550BAN3) are expected to price June 23 and settle June 28.

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