Credit Suisse plans step-up contingent coupon notes linked to S&P 500

By Susanna Moon

Chicago, Dec. 31 – Credit Suisse AG plans to price step-up contingent coupon callable yield notes due Jan. 30, 2030 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon if the index closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that quarter. The contingent coupon rate is 7% per year initially, then steps up to 8% per year on April 30, 2020 and to 9% per year on April 30, 2025.

The payout at maturity will be par unless the index finishes below its knock-in level, 50% of its initial level, in which case investors will be fully exposed to the index’s decline.

The notes are callable at par on any interest payment date.

Incapital LLC is the placement agent.

The notes will price on Jan. 27 and settle on Jan. 30.

The Cusip number is 22547QXH4.

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