By Wendy Van Sickle
Columbus, Ohio, June 25 – Credit Suisse AG, London Branch priced $1.59 million of autocallable contingent income securities due Dec. 23, 2021 linked to the worst performing of the SPDR S&P 500 exchange-traded fund, the SPDR Dow Jones Industrial Average ETF Trust and the Utilities Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 9% per year if each ETF closes at or above its downside threshold level, 75% of its initial share price, on each day during that quarter.
Beginning Dec. 19, 2019, the notes will be automatically called at par of $10 plus the contingent coupon if each ETF closes at or above its initial share price on any quarterly observation date.
If each ETF finishes at or above its downside threshold level, the payout at maturity will be par plus the final contingent coupon, if applicable. If any ETF finishes below its downside threshold level, investors will lose 1% for every 1% that the worst-performing ETF declines from its initial share price.
Credit Suisse Securities (USA) Inc. is the agent. Morgan Stanley Smith Barney LLC is acting as distributor.
| Issuer: | Credit Suisse AG, London Branch
|
| Issue: | Autocallable contingent income securities
|
| Underlying ETFs: | SPDR S&P 500 exchange-traded fund, the SPDR Dow Jones Industrial Average ETF Trust and the Utilities Select Sector SPDR Fund
|
| Amount: | $1,585,000
|
| Maturity: | Dec. 23, 2021
|
| Coupon: | 9% annualized, payable quarterly if each ETF closes at or above its downside threshold on each day that period
|
| Price: | Par
|
| Payout at maturity: | Par unless any ETF finishes below its threshold level, in which case investors will be fully exposed to any losses of the worst performing ETF
|
| Call: | At par if each component closes at or above its initial level on any quarterly observation date after six months
|
| Initial levels: | $293.06 for S&P ETF, $26.06 for Dow ETF, $60.85 for utilities fund
|
| Downside thresholds: | $219.80 for S&P ETF, $199.17 for Dow ETF, $45.64 for utilities fund, 60% of initial levels
|
| Pricing date: | June 19
|
| Settlement date: | June 24
|
| Underwriter: | Credit Suisse Securities (USA) Inc. with Morgan Stanley Smith Barney LLC as distributor
|
| Fees: | 2.5%
|
| Cusip: | 22550F591
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
