Credit Suisse increases cap for VelocityShares Daily Inverse VIX Short Term ETNs to $400 million

By Angela McDaniels

Tacoma, Wash., June 27 - Credit Suisse AG, Nassau Branch increased the maximum principal amount of 0% VelocityShares Daily Inverse VIX Short Term exchange-traded notes it plans to issue to $400 million from $200 million, according to a 424B2 filing with the Securities and Exchange Commission.

The notes mature Dec. 4, 2030 and are linked to the S&P 500 VIX Short-Term Futures index.

In November 2010, the issuer said it planned to issue up to $100 million of the notes. On March 30, it increased this amount to $200 million. So far, it has priced $155 million principal amount at prices ranging from par for 175.79.

On June 16, the issuer announced a 10-for-1 split of the notes, which became effective Monday. The notes now have a stated principal amount of $10.

The index is designed to provide investors with exposure to one or more maturities of futures contracts on the CBOE Volatility index, which reflect implied volatility of the S&P 500 index at various points along the volatility forward curve.

The notes (Cusip: 22542D795) are listed on the NYSE Arca under the ticker symbol "XIV."

Credit Suisse Securities (USA) LLC is the agent.

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