NEW YORK, Nov. 8, 2016 /PRNewswire/ -- Credit Suisse AG
announced today its intention to delist and repurchase the
following Exchange Traded Notes (the "ETNs") in whole pursuant to
their terms:
ETN
|
Ticker
|
CUSIP
|
Credit Suisse X-Links
Cushing® MLP Infrastructure ETNs due April 20,
2020
|
MLPN
|
22542D852
|
Credit Suisse AG intends to withdraw the NYSE Arca listing of
the ETNs effective on or about November 28,
2016. Upon the effective delisting date, the ETNs will no
longer be listed on any national stock exchange.
Credit Suisse AG intends to delist the ETNs in order to
repurchase all of the outstanding ETNs. Credit Suisse AG has
the right to repurchase the ETNs in whole in the event the ETNs are
not currently listed on a national stock exchange. Credit
Suisse AG intends to deliver an irrevocable call notice with
respect to its repurchase of the ETNs to DTC on or about
November 28, 2016. We
anticipate that the ETNs will continue to trade on NYSE Arca up to
and including November 25,
2016. As described in the pricing supplement relating to the
ETNs (the "Pricing Supplement"), investors will receive a cash
payment on the repurchase date, expected to be on or about
December 2, 2016, in an amount equal
to the daily repurchase value, which is based on the closing
indicative value of the ETNs on the valuation date, which is
expected to be on or about November 29,
2016 (the trading day immediately following the date the
irrevocable call notice is delivered to DTC).
Subject to the minimum redemption amount and other conditions,
Credit Suisse AG will continue to accept investors' offers for
repurchase of the ETNs up to and including November 28, 2016 pursuant to the terms of the
ETNs as described in the Pricing Supplement. If you wish to offer
your ETNs to Credit Suisse AG for repurchase, you and your broker
must follow the procedures set forth in the Pricing Supplement,
which can be accessed on the Securities and Exchange Commission
website at www.sec.gov as follows:
https://www.sec.gov/Archives/edgar/data/1053092/000110465915033763/a15-10499_2424b2.htm
Upon any such repurchase of the ETNs at the investors' option,
the terms of the ETNs specify that investors will receive a cash
payment equal to the daily repurchase value, which is based on the
closing indicative value of the ETNs on the applicable valuation
date for such repurchase, all as described in the Pricing
Supplement.
Only the Credit Suisse X-Links Cushing® MLP
Infrastructure ETNs due April 20,
2020 (NYSE Arca: MLPN) are affected by this
announcement.
As disclosed in the Risk Factors section of the Pricing
Supplement, the market value of the ETNs may be influenced by,
among other things, the levels of actual and expected supply and
demand for the ETNs in the secondary market. It is possible
that the delisting and repurchase of the ETNs, as described above,
may influence the market value of the ETNs. Credit Suisse AG
cannot predict with certainty what impact, if any, the delisting
and repurchase of the ETNS will have on the public trading price of
the ETNs. Investors are cautioned that paying a premium
purchase price over the indicative value of the ETNs could lead to
significant losses in the event the investor sells such ETNs at a
time when the premium has declined from the time of purchase or is
no longer present in the market place.
As disclosed in the Risk Factors section and the Use of Proceeds
and Hedging section of the Pricing Supplement, we or our affiliates
may have acquired and may dispose of the securities of one or more
MLPs that are included in the index underlying the ETNs (the
"Index", and such securities the "Constituent MLPs"), or listed or
over-the-counter options contracts in, or other derivatives or
synthetic instruments related to, the Index or one or more
Constituent MLPs, to hedge our obligations under the ETNs.
The price at which such positions may be acquired or disposed of
may be a factor in determining the levels of the Index. Although we
and our affiliates have no reason to believe that these hedging
activities will have a material impact on the level of the Index,
there can be no assurance that the level of the Index will not be
affected. To the extent that we or our affiliates have a hedge
position in the Index or any Constituent MLPs, we or our affiliates
may liquidate a portion or all of those holdings on or before the
valuation date. This activity may adversely affect the level of the
Index and, as a consequence, the value of the ETNs and the amount
payable upon repurchase of the ETNs by Credit Suisse AG. Moreover,
this hedging activity may result in us or our affiliates receiving
a profit, even if the value of the ETNs declines.
Credit Suisse AG
Credit Suisse AG is one of the
world's leading financial services providers and is part of the
Credit Suisse group of companies (referred to here as 'Credit
Suisse'). As an integrated bank, Credit Suisse offers clients its
combined expertise in the areas of private banking, investment
banking and asset management. Credit Suisse provides advisory
services, comprehensive solutions and innovative products to
companies, institutional clients and high-net-worth private clients
globally, as well as to retail clients in Switzerland. Credit Suisse is headquartered in
Zurich and operates in over 50
countries worldwide. The group employs approximately 47,690 people.
The registered shares (CSGN) of Credit Suisse's parent company,
Credit Suisse Group AG, are listed in Switzerland and, in the form of American
Depositary Shares (CS), in New
York. Further information about Credit Suisse can be found
at www.credit-suisse.com.
This document was produced by and the opinions expressed are
those of Credit Suisse as of the date of writing and are subject to
change.
Copyright © 2016, CREDIT SUISSE GROUP AG and/or its affiliates.
All rights reserved.
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SOURCE Credit Suisse AG