Credit Suisse plans contingent coupon autocallables linked to oil ETF

By Angela McDaniels

Tacoma, Wash., March 5 – Credit Suisse AG, London Branch plans to price autocallable market-linked securities with contingent coupon and contingent downside due March 29, 2021 linked to the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon if the ETF closes at or above the threshold level, 75% of the initial share price, on the calculation day for that quarter. The contingent coupon rate is expected to be 9.5% to 10.5% per year and will be set at pricing.

Beginning in September 2019, the notes will be automatically called at par if the ETF closes at or above its initial share price on any quarterly calculation date.

If the final share price is greater than or equal to the threshold level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the ETF declines from the initial share price.

Wells Fargo Securities LLC is the agent.

The notes will price March 28.

The Cusip number is 22551LYP9.

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