Published on 4/26/2022 in the Prospect News Structured Products Daily.
New Issue: Credit Suisse sells $1.2 million contingent coupon callable yield notes on three stocks
By Kiku Steinfeld
Chicago, April 26 – Credit Suisse AG, London Branch, priced $1.2 million of contingent coupon callable yield notes due Oct. 1, 2025 to the least performing of the stocks of Coca-Cola Co., McDonald’s Corp, and Verizon Communications Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at the rate of 7% per year if each stock closes at or above its coupon barrier price, 80% of its initial price, on the related observation date. Previously unpaid contingent coupons, if any, will be paid whenever a contingent coupon is paid.
The notes may be called at par plus any contingent coupon due at the issuer’s option on any quarterly early redemption date.
The payout at maturity will be par plus the final coupon if each stock finishes at or above its coupon barrier.
If the worst performer finishes below the coupon barrier but at or above its 50% knock-in price, the payout at maturity will be par. Otherwise, in which case investors will be exposed to the decline of the worst performer from its initial price, payable in shares or cash at the issuer’s option.
Credit Suisse Securities (USA) LLC is the agent.
| Issuer: | Credit Suisse AG, London Branch
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| Issue: | Contingent coupon callable yield notes
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| Underlying stocks: | Coca-Cola Co., McDonald’s Corp, and Verizon Communications Inc.
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| Amount: | $1.2 million
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| Maturity: | Oct. 1, 2025
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| Coupon: | 7% per year, payable quarterly if each underlying asset closes at or above its coupon barrier price on related observation date; previously unpaid contingent coupons will be paid whenever a contingent coupon is paid
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| Price: | Par
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| Payout at maturity: | If all stocks finish at or above coupon barrier, par plus final coupon; if worst performer finishes below coupon barrier but at or above its knock-in price, par; otherwise, 1% loss for every 1% decline of worst performer from initial level, payable in shares or cash at issuer’s option
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| Call: | Par plus any coupon due on any quarterly early redemption date
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| Initial prices: | $52.64 for Coca-Cola, $243.77 for McDonald’s, $54.16 for Verizon
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| Coupon barrier prices: | $42.112 for Coca-Cola, $195.016 for McDonald’s, $43.328 for Verizon; 80% of initial prices
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| Knock-in prices: | $26.32 for Coca-Cola, $121.885 for McDonald’s, $27.08 for Verizon; 50% of initial prices
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| Pricing date: | Sept. 29, 2021
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| Settlement date: | Oct. 1, 2021
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| Agent: | Credit Suisse Securities (USA) LLC
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| Fees: | 0.75%
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| Cusip: | 22550MCR8
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