Credit Suisse plans reverse split of VelocityShares natural gas ETNs

By Wendy Van Sickle

Columbus, Ohio, Dec. 13 – Credit Suisse AG said it will implement a 1-for-10 reverse split of its VelocityShares 3x Long Natural Gas exchange-traded notes (Symbol: UGAZ) linked to the S&P GSCI Natural Gas Index Excess Return, effective Dec. 20.

Holders who purchased the ETNs before Dec. 20 will receive one reverse split-adjusted ETN for every 10 pre-reverse-split ETNs, according to a bank press release.

In addition, the purchasers that hold a number of units of ETNs not evenly divisible by 10 will receive a cash payment for any fractional number of units, which will be determined on Dec. 27 and paid on Jan. 2.

The closing indicative value of the ETNs on Dec. 19 will be multiplied by 10 to determine the reverse split-adjusted closing indicative value.

After the reverse split, the ETNs will have a new Cusip number but will retain their ticker symbol. The Cusip number will be changed to 22539T217 from 22539T324.

The reverse split will affect the trading denominations of the ETNs but will not have any effect on the principal amount of the underlying notes, except that the principal amounts will be reduced by the corresponding aggregate amount of any cash payments for the partials.

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