NEW YORK, Nov. 16, 2016 /PRNewswire/ -- Credit Suisse
AG announced today its intention to delist and suspend further
issuances of the following Exchange Traded Notes (the "ETNs"):
ETN
|
Ticker
|
CUSIP
|
VelocityShares™
3x Inverse Crude Oil ETNs linked to the S&P GSCI®
Crude Oil Index ER due February 9, 2032
|
DWTI
|
22542D548
|
VelocityShares™ 3x Long Crude Oil ETNs linked to the
S&P GSCI® Crude Oil Index ER due February 9,
2032
|
UWTI
|
22539T316
|
As part of its continuing effort to monitor and manage its suite
of exchange traded notes, Credit Suisse AG has decided to delist
the foregoing ETNs with a view to better aligning its product suite
with its broader strategic growth plans. Accordingly, Credit
Suisse AG anticipates that the ETNs will continue to trade on NYSE
Arca up to and including December 8,
2016 and that effective December 9,
2016, the ETNs will no longer be listed for trading on any
national securities exchange. In addition, Credit Suisse AG
will suspend further issuances of these ETNs effective December 9, 2016.
Following their delisting, the ETNs will remain outstanding,
though they will no longer trade on any national securities
exchange. The ETNs may trade, if at all, on an
over-the-counter basis. Although it is not currently
accelerating the ETNs at its option, Credit Suisse AG continues to
have the right to do so, as described in the pricing supplement for
the ETNs (the "Pricing Supplement"), and may choose to accelerate
the ETNs at its option in the future, either together on the same
date or each on a separate date, including shortly after the
delisting. Subject to the minimum redemption amount and other
conditions, investors can continue to exercise their early
redemption right with respect to the ETNs prior to, and following,
the ETNs' delisting, pursuant to the terms of the ETNs as described
in the Pricing Supplement. If investors wish to exercise their
early redemption right, they and their 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/1053092/000095010316017628/dp70004_424b2-a32.htm
Only the VelocitySharesTM 3x Inverse Crude Oil ETNs
linked to the S&P GSCI® Crude Oil Index ER due
February 9, 2032 (NYSE Arca: DWTI)
and the VelocitySharesTM 3x Long Crude Oil ETNs linked
to the S&P GSCI® Crude Oil Index ER due February 9, 2032 (NYSE Arca: UWTI) 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 this announcement and the delisting and suspension of further
issuances of the ETNs, as described above, may influence the market
value of the ETNs. For example, delisting the ETNs will
remove the primary source of liquidity for the ETNs and investors
may not be able to sell their ETNs in the secondary market at all.
In addition, suspending further issuances of the ETNs may
further adversely affect liquidity for any secondary market that
may develop following a delisting. Credit Suisse AG cannot
predict with certainty what impact, if any, these events 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. An
investor that pays a premium for the ETNs, for example, may suffer
significant losses if the investor is unable to sell the ETNs in
the secondary market, if the investor sells at a time when the
premium has declined or is no longer present or if Credit Suisse AG
accelerates the ETNs at its option. Even if investors do not
pay a premium over the indicative value of the ETNs, investors
could still suffer substantial losses because of the illiquidity
associated in the secondary market. For instance, investors
may not be able to sell the ETNs readily and may suffer substantial
losses and/or sell the ETNs at prices substantially less than their
intraday indicative value or closing indicative value, including
being unable to sell them at all or only sell them for a price of
zero in the secondary market.
In addition, as described above, Credit Suisse AG continues to
have the right to accelerate the ETNs at its option in the future,
either together on the same date or each on a separate date,
including shortly after the delisting. If Credit Suisse AG
accelerates the ETNs at its option, investors will receive the
applicable accelerated redemption amount, which will be an amount
equal to the arithmetic average of the closing indicative values
(which will not include any premium) of the applicable ETN during
the accelerated valuation period. Any investors who paid more
for their ETNs (including any premium to closing indicative value)
than the amount they receive upon an acceleration will suffer a
loss on their investment, which could be significant. In
addition, investors will not receive any other compensation or
amount for the loss of the investment opportunity of holding the
ETNs and investors may be unable to invest in other securities with
a similar level of risk and/or that provide a similar investment
opportunity as the ETNs.
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