Credit Suisse plans contingent coupon callable yield notes on indexes

By Devika Patel

Knoxville, Tenn., Jan. 2– Credit Suisse AG, London branch, plans to price contingent coupon callable yield notes due Jan. 26, 2021 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 semiannual coupon at an annualized rate of 7.5% to 9.5% if each index closes above its coupon barrier level, 70% of its initial level, on the observation date for that period. The exact coupon and coupon barrier level will be set at pricing.

Beginning on July 16, 2018, the notes will be callable at par plus any coupon payment on any interest payment date.

The payout at maturity will be par unless either of the indexes finishes below its knock-in level, expected to be 70%, in which case investors will lose 1% for each 1% decline of the worse performing index from its initial level. The exact knock-in level will be set at pricing.

Credit Suisse Securities (USA) LLC is the agent.

The notes (Cusip: 22550W4M6) are expected to price on Jan. 19 and settle on Jan. 26.

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