Free Writing Prospectus - Filing Under Securities Act Rules 163/433 (fwp)
08 May 2013 - 5:36AM
Edgar (US Regulatory)
Filed pursuant to Rule 433
Registration Statement No. 333-180300-03
FINANCIAL PRODUCTS
FACT SHEET (U847)
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Offering Period: May 7, 2013—May 28,
2013
5 Year Contingent Coupon Callable Yield
Notes Linked to the S&P 500
®
Index and the Russell 2000
®
Index
Return
Profile
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5
year Contingent Coupon Callable Yield Notes linked to the performance of the S&P 500
®
Index and the Russell
2000
®
Index.
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•
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Subject to Early Redemption, if a Coupon Barrier Event does not occur, the contingent interest payments will be paid quarterly in arrears at a rate expected to be between [5.50-6.50]% per annum (to be determined on the Trade Date) for the corresponding interest period, calculated on a 30/360 basis; if a Coupon Barrier Event occurs, no interest will be paid for the corresponding interest period.
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If a Knock-In Event does not occur, investors will be entitled to receive their principal amount at maturity.
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If a Knock-In Event occurs, the payment at maturity will be determined by the Underlying Return of the Lowest Performing Underlying.
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Any payment on the securities is subject to our ability to pay our obligations as they become due.
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Terms
& Knock-In Event
Issuer:
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Credit Suisse AG ("Credit Suisse"), Nassau Branch.
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Trade Date:
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Expected to be May 29, 2013.
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Settlement Date:
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Expected to be May 31, 2013.
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Underlyings:
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The S&P 500
®
Index and the Russell 2000
®
Index.
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Contingent Interest Rate:
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Unless redeemed earlier, with respect to any interest period, if a Coupon Barrier Event does not occur, expected to be between [5.50-6.50]% per annum (to be determined on the Trade Date), calculated on a 30/360 basis; if a Coupon Barrier Event occurs, no contingent interest will be paid for the corresponding interest period.
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Contingent Interest Payment Dates:
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September 3, 2013, December 3, 2013, March 3, 2014, June 3, 2014, September 3, 2014, December 3, 2014, March 3, 2015, June 3, 2015, September 3, 2015, December 3, 2015, March 3, 2016, June 3, 2016, September 6, 2016, December 5, 2016, March 3, 2017, June 5, 2017, September 5, 2017, December 4, 2017, March 5, 2018, and the Maturity Date, unless redeemed earlier or a Coupon Barrier Event occurs.
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Coupon Barrier Event:
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A Coupon Barrier Event occurs if, on an Observation Date, the closing level of any Underlying is less than its Coupon Barrier Level.
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Coupon Barrier Level:
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For each Underlying, approximately 65.0% of the Initial Level for such Underlying (to be determined on the Trade Date).
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Observation Dates:
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August 28, 2013, November 27, 2013, February 26, 2014, May 29, 2014, August 28, 2014, November 28, 2014, February 26, 2015, May 29, 2015, August 31, 2015, November 30, 2015, February 29, 2016, May 31, 2016, August 31, 2016, November 30, 2016, February 28, 2017, May 31, 2017, August 30, 2017, November 29, 2017, February 28, 2018, and the Valuation Date.
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Early Redemption:
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Prior to the Maturity Date, the Issuer may redeem the securities on any Contingent Interest Payment Date scheduled to occur on or after December 3, 2013 upon notice on or before the relevant Early Redemption Notice Date at 100% of the principal amount plus accrued but unpaid contingent interest, if any.
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Early Redemption Notice Dates:
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November 27, 2013, February 26, 2014, May 29, 2014, August 28, 2014, November 28, 2014, February 26, 2015, May 29, 2015, August 31, 2015, November 30, 2015, February 29, 2016, May 31, 2016, August 31, 2016, November 30, 2016, February 28, 2017, May 31, 2017, August 30, 2017, November 29, 2017, or February 28, 2018, as applicable.
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Knock-In Level:
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For each Underlying, approximately 65.0% of the Initial Level for such Underlying (to be determined on the Trade Date).
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Knock-In Event:
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A Knock-In Event occurs if the Final Level of the Lowest Performing Underlying is equal to or less than its Knock-In Level.
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Initial Level:
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For each Underlying, the closing level of such Underlying on the Trade Date.
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Final Level:
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For each Underlying, the closing level of such Underlying on the Valuation Date.
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Redemption Amount:
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Subject to Early Redemption, for each $1,000 principal amount of securities (a) if a Knock-In Event occurs, $1,000 x (1 + the Underlying Return of the Lowest Performing Underlying); (b) if a Knock-In Event does not occur, $1,000.
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Lowest Performing Underlying:
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The Underlying with the lowest Underlying Return.
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Underlying Return:
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For each Underlying, calculated as follows: (Final Level – Initial Level) / Initial Level; subject to a maximum of zero.
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Valuation Date:
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May 30, 2018
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Maturity Date:
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June 4, 2018
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CUSIP:
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22547Q2N5
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Benefits
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Offers the potential for above-market contingent interest payment versus ordinary fixed income investments.
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Reduced downside risk due to a 35.0% contingent buffer.
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Hypothetical
Returns at Maturity
Percentage
Change from the
Initial Level to the
Final Level of the
Lowest
Performing
Underlying
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Underlying
Return of
the Lowest
Performing
Underlying
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Redemption
Amount per
$1,000
Principal
Amount
(1)(2)
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50%
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0%
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$1,000
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40%
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0%
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$1,000
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30%
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0%
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$1,000
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20%
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0%
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$1,000
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10%
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0%
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$1,000
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0%
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0%
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$1,000
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-10%
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-10%
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$1,000
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-20%
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-20%
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$1,000
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-30%
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-30%
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$1,000
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-40%
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-40%
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$600
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-50%
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-50%
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$500
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(1)
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Does not include any contingent interest payments on the securities.
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(2)
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The hypothetical Redemption Amounts set forth above are for illustrative purposes
only and may not be the actual returns applicable to the investor. The numbers appearing in the table have been rounded for ease
of analysis.
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Product
Risks
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Investment may result in a loss of up to 100% of principal.
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The value of the securities and the payment of any amount due on the securities are subject to the credit risk of Credit Suisse.
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The securities will not pay more than the principal amount, plus accrued and unpaid contingent interest, if any, at maturity or upon Early Redemption.
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If a Coupon Barrier Event occurs on any Observation Date, no interest will be paid with respect to the corresponding interest period.
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If a Knock-In Event occurs, the return will be based on the Lowest Performing Underlying.
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The Redemption Amount will be less than the principal amount even if a Knock-In Event occurs with respect to only one Underlying.
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The securities are subject to Early Redemption, which may limit an investor’s ability to accrue interest over the full term of the securities.
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(See "Additional Risk Considerations" on the next page.)
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Product
Summary
Horizon (months)
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5 Years
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Principal Repayment
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Principal at Risk
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Investment Objective
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Income
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Market Outlook
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Neutral
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FINANCIAL PRODUCTS
FACT SHEET
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Offering Period: May 7, 2013—May 28,
2013
5 Year Contingent Coupon Callable Yield Notes
Additional
Risk Considerations
·
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The securities are exposed equally
to risk of fluctuations in the levels of the Underlyings to the same degree for each Underlying.
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Prior to maturity, costs such
as concessions and hedging may affect the value of the securities.
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Liquidity – The securities
will not be listed on any securities exchange. Credit Suisse (or its affiliates) intends to offer to purchase the securities in
the secondary market but is not required to do so. Many factors, most of which are beyond the control of the Issuer, will influence
the value of the securities and the price at which the securities may be purchased or sold in the secondary market. For example,
the creditworthiness of the Issuer, including actual or anticipated downgrades to the Issuer’s credit ratings, may be a
contributing factor.
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·
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Potential Conflicts –
We and our affiliates play a variety of roles in connection with the issuance of the securities including acting as calculation
agent and hedging our obligations under the securities. The agent for this offering, Credit Suisse Securities (USA) LLC (“CSSU”),
is our affiliate. In accordance with FINRA Rule 5121, CSSU may not make sales in this offering to any discretionary account without
prior written approval of the customer.
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As a holder of the securities,
you will not have voting rights or rights to receive cash dividends or other distributions with respect to the equity securities
comprising the Underlyings.
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The
risks set forth in the section entitled “Product Risks” on the preceding page and this section “Additional Risk
Considerations” are only intended as summaries of some of the risks relating to an investment in the securities. Prior to
investing in the securities, you should, in particular, review the “Product Risks” and “Additional Risk Considerations”
sections herein, the “Selected Risk Considerations” section in the pricing supplement
and the “Risk Factors”
section in the product supplement, which set forth risks related to an investment in the securities.
Disclaimer
IRS
Circular 230 Disclosure: Credit Suisse and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters
contained herein (including any attachments) is not intended or written to be used and cannot be used, in connection with the
promotion, marketing or recommendation by anyone unaffiliated with Credit Suisse of any of the matters addressed herein or for
the purpose of avoiding U.S. tax-related penalties.
Investment
suitability must be determined individually for each investor, and the financial instruments described herein may not be suitable
for all investors. The products described herein should generally be held to maturity as early sales could result in lower than
anticipated returns. This information is not intended to provide and should not be relied upon as providing accounting, legal,
regulatory or tax advice. Investors should consult with their own advisors as to these matters.
This
material is not a product of Credit Suisse Research Departments. Financial Products may involve a high degree of risk, and may
be appropriate investments only for sophisticated investors who are capable of understanding and assuming the risks involved.
Credit Suisse and its affiliates may have positions (long or short), effect transactions or make markets in securities or financial
instruments mentioned herein (or options with respect thereto), or provide advice or loans to, or participate in the underwriting
or restructuring of the obligations, issuers of the stocks comprising the applicable index, indices or fund mentioned herein.
Credit Suisse is a member of FINRA, NYSE and SIPC. Clients should contact their salespersons at, and execute transactions through,
a Credit Suisse entity qualified in their home jurisdiction unless governing law permits otherwise.
You
may revoke your offer to purchase the securities at any time prior to the time at which we accept such offer on the date the securities
are priced. We reserve the right to change the terms of, or reject any offer to purchase the securities prior to their issuance.
In the event of any changes to the terms of the securities, we will notify you and you will be asked to accept such changes in
connection with your purchase. You may also choose to reject such changes in which case we may reject your offer to purchase.
This
document is a summary of the terms of the securities and factors that you should consider before deciding to invest in the securities.
Credit Suisse has filed a registration statement (including pricing supplement, underlying supplement, product supplement, prospectus
supplement and prospectus) with the Securities and Exchange Commission, or SEC, for the offering to which this offering summary
relates. Before you invest, you should read this summary together with the Preliminary Pricing Supplement dated May 7, 2013, Underlying
Supplement dated November 19, 2012, Product Supplement No. U-I dated March 23, 2012, Prospectus Supplement dated March 23, 2012
and Prospectus dated March 23, 2012, to understand fully the terms of the securities and other considerations that are important
in making a decision about investing in the securities. You may get these documents without cost by visiting EDGAR on the SEC
Web site at
www.sec.gov
. Alternatively, Credit
Suisse, any agent or any dealer participating in this offering will arrange to send you the pricing supplement, underlying supplement,
product supplement, prospectus supplement and prospectus if you so request by calling toll-free 1-800-221-1037.
You
may access the pricing supplement related to the offering summarized herein on the SEC website at:
http://www.sec.gov/Archives/edgar/data/1053092/000095010313002873/dp38122_424b2-u847.htm
You
may access the underlying supplement, product supplement, prospectus supplement and prospectus on the SEC website at
www.sec.gov
or by clicking on the hyperlinks to each of the respective documents incorporated by reference in the pricing supplement.