Published on 9/9/2019 in the Prospect News Structured Products Daily.
New Issue: Credit Suisse prices $750,000 contingent coupon autocallables linked to airline stocks
By Angela McDaniels
Tacoma, Wash., Sept. 9 – Credit Suisse AG, London Branch priced $750,000 of contingent coupon autocallable yield notes due Sept. 10, 2021 linked to the least performing of the common stocks of American Airlines Group Inc., Delta Air Lines, Inc., Southwest Airlines Co. and United Airlines Holdings, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at the rate of 15.15% per year if each stock closes at or above its coupon barrier level, 50% of its initial share price, on the observation date for that quarter.
Beginning March 5, 2020, the notes will be automatically called at par if each stock closes at or above its initial share price on any quarterly observation date.
The payout at maturity will be par unless any stock finishes below its knock-in price, 60% of its initial share price, in which case investors will be exposed to the decline of the least-performing stock from its initial share price.
Credit Suisse Securities (USA) LLC is the agent.
| Issuer: | Credit Suisse AG, London Branch
|
| Issue: | Contingent coupon autocallable yield notes
|
| Underlying stocks: | American Airlines Group Inc. (Symbol: AAL), Delta Air Lines, Inc. (Symbol: DAL), Southwest Airlines Co. (Symbol: LUV) and United Airlines Holdings, Inc. (Symbol: UAL)
|
| Amount: | $750,000
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| Maturity: | Sept. 10, 2021
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| Coupon: | Each quarter, notes pay contingent coupon at rate of 15.15% per year unless any stock closes below coupon barrier level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless any stock finishes below knock-in price, in which case exposure to decline of least-performing stock from initial share price
|
| Call: | Beginning March 5, 2020, automatically at par if each stock closes at or above initial share price on any quarterly observation date
|
| Initial share prices: | $27.00 for American, $57.23 for Delta, $52.10 for Southwest and $83.91 for United
|
| Knock-in prices: | $16.20 for American, $34.338 for Delta, $31.26 for Southwest and $50.346 for United, or 60% of initial share prices
|
| Coupon barriers: | $13.50 for American, $28.615 for Delta, $26.05 for Southwest and $41.955 for United, or 50% of initial share price
|
| Pricing date: | Sept. 5
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| Settlement date: | Sept. 10
|
| Agent: | Credit Suisse Securities (USA) LLC
|
| Fees: | 0.55%
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| Cusip: | 22552FWQ1
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