Credit Suisse plans contingent coupon callable notes tied to indexes

By Devika Patel

Knoxville, Tenn., Oct. 24 – Credit Suisse AG, London branch plans to price contingent coupon callable yield notes due Oct. 29, 2027 linked to the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an expected annual rate of at least 9% if each index closes at or above its coupon barrier level, expected to be 75% of the initial level, on the observation date for that quarter. The exact coupon and coupon barrier level will be set at pricing.

The notes may be called at par plus the contingent coupon on any quarterly contingent coupon payment date beginning on Oct. 31, 2018.

The payout at maturity will be par unless either index finishes below its expected 60% knock-in level, in which case investors will lose 1% for each 1% decline of the worst performing index. The exact knock-in level will be set at pricing.

Credit Suisse Securities (USA) LLC is the agent.

The notes (Cusip: 22550BL50) are expected to price Oct. 26 and settle Oct. 31.

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