Credit Suisse plans contingent coupon callable notes on Wells Fargo

By Marisa Wong

Madison, Wis., Oct. 11 - Credit Suisse AG, Nassau Branch plans to price contingent coupon callable yield notes due April 17, 2014 linked to the common stock of Wells Fargo & Co., according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay an annualized coupon of 8.6% each quarter if the closing price of Wells Fargo stock is equal to or greater than the barrier price, which will be about 70% of the initial price. Otherwise, holders will not receive the contingent interest payment for that quarter.

The notes will be automatically called at par plus the contingent coupon if the closing price of the underlying shares on any of the quarterly valuation dates is greater than or equal to the initial share price.

If the notes are not automatically called, the payout at maturity will be par if the final share price is greater than or equal to the knock-in price - about 70% of the initial price. If the final share price is less than the knock-in price, investors will receive a number of shares equal to $1,000 divided by the initial share price.

The exact barrier price and knock-in price will be set at pricing.

The notes (Cusip: 22546TD99) are expected to price on Oct. 12 and settle on Oct. 17.

Credit Suisse Securities (USA) LLC is the underwriter.

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