NEW YORK,
April 26, 2017
/PRNewswire/ -- Credit Suisse today announced the launch
of its X-LinksTM Crude Oil Shares Covered Call
ETNs (the "ETNs"), which are listed on the NASDAQ exchange
under the ticker symbol "USOI" and are eligible to begin
trading today.
USOI
Profile
|
|
ETN Ticker
|
USOI
|
Issuer
|
Credit Suisse
AG
|
Underlying
Index
|
Credit Suisse Nasdaq WTI Crude Oil
FLOWSTM
106 Index (price
return)
|
Index
Ticker
|
QUSOI <Index>
(Bloomberg)
|
Index
Yield1
|
16.25%
|
Income
Potential
|
Variable monthly
coupon2
|
Investor Fee
Rate
|
0.85% per annum,
accrued on a daily basis3
|
Primary
Exchange
|
NASDAQ4
|
Indicative Value
Ticker5
|
USOIIV <INDEX>
(Bloomberg) / ^USOI-IV (Yahoo! Finance)
|
1 The
Index Yield was calculated by the Index Calculation Agent, Nasdaq,
Inc., and equals the arithmetic average of the seven (7) monthly
Coupon Percentages occurring from, and including, October 2016 to,
and including, April 2017, multiplied by twelve (12) (to annualize
such average), and rounded to two decimal places for ease of
analysis. The Coupon Percentage for any Index Distribution Date
will be the Distribution for such Index Distribution Date divided
by the Closing Level of the Index on the Index Business Day
immediately preceding the Index Distribution Date. The Distribution
represents the notional monthly call premium earned on the sale of
the call options written on the USO Shares during the immediately
preceding Index Rebalancing Period pursuant to the Index
methodology described in the applicable pricing supplement. The
Index was established on September 26, 2016; therefore, no
historical information regarding the Index or its Coupon
Percentages is available prior to that date. Because the ETNs'
variable monthly coupon, if any, equals the ETNs' Closing
Indicative Value on the Index Business Day immediately preceding
the relevant Index Distribution Date multiplied by the Coupon
Percentage for that Index Distribution Date, the ETN's coupon yield
may be less than the Index Yield.
2 Investors are not guaranteed any coupon or
distribution amount under the ETNs. Any payment on the ETNs is
subject to our ability to pay our obligations as they become
due.
3 In addition to the ETNs' Daily Investor Fee, which is
based on an annual Investor Fee Rate of 0.85%, the Index includes
Notional Transaction Costs. The Notional Transaction Costs reflect
the monthly transaction costs of hypothetically buying and selling
the call options and selling the USO Shares and equal 0.03%, 0.03%
and 0.01%, respectively, times the closing price of the USO Shares
on the date of such notional transactions. On an annual basis, such
transaction costs are expected to be approximately equal to 0.84%.
The actual cost will vary depending on the value of the USO Shares
on the date of such transactions. Also, if your ETNs are
redeemed directly with Credit Suisse, you will be charged an Early
Redemption Charge. Please see the applicable pricing supplement for
disclosure of fees and charges. Please consult your financial
advisor to learn more about the costs associated with the purchase
or sale of the ETNs in the secondary market.
4 We have no obligation to maintain any listing on the
NASDAQ exchange or on any other exchange, and may delist the ETNs
at any time.
5 The "indicative value" refers to the Intraday
Indicative Value and the Closing Indicative Value, which will be
published on each Trading Day under the Bloomberg ticker symbol
"USOIIV <INDEX>" and under the Yahoo! Finance ticker
symbol "^USOI-IV". The "indicative value" for the ETNs is designed
to reflect the economic value of the ETNs at a given time. The
indicative value is a calculated value and is not the same as the
trading price of the ETNs and is not a price at which you can buy
or sell the ETNs in the secondary market. The indicative value does
not take into account the factors that influence the trading price
of the ETNs, such as imbalances of supply and demand, lack of
liquidity and credit considerations. The actual trading price of
the ETNs in the secondary market may vary significantly from their
indicative value. Investors can compare the trading price (if such
concurrent trading price is available) of the ETNs against the
indicative value to determine whether the ETNs are trading in the
secondary market at a premium or a discount to the economic value
of the ETNs at any given time. Investors are cautioned that paying
a premium purchase price over the indicative value at any time
could lead to the loss of any premium in the event the investor
sells the ETNs when such premium has declined or is no longer
present in the market place or at maturity or upon early redemption
or acceleration. It is also possible that the ETNs will trade in
the secondary market at a discount below the indicative value and
that investors would receive less than the indicative value if they
had to sell their ETNs in the market at such time.
|
About the ETNs and the Credit Suisse
Nasdaq WTI Crude Oil FLOWSTM
106 Index
The ETNs provide a return linked to the performance of the
price return version of the Credit Suisse Nasdaq WTI Crude
Oil FLOWSTM 106 Index
(the "Index") and may pay a variable monthly
coupon based on the notional option premiums, if any, generated by
the Index's hypothetical monthly sale of call options on the shares
of the United States Oil Fund, LP (such shares the "USO
Shares"). The Index seeks to
implement a "covered call" investment strategy by maintaining a
notional long position in USO Shares while notionally selling call
options on that position on a monthly basis that are approximately
6% out-of-the-money (i.e., strike price is 106%). The notional net
premiums received (if any) for selling the calls are paid out at
the end of each monthly period as a Distribution. The Index's
strategy is designed to generate monthly cash flow in exchange for
giving up any gains beyond the 106% strike
price. The Index's strategy provides no
protection from losses resulting from a decline in the value of the
USO Shares beyond the notional call premium received, if any. The
return on the ETNs will be based on the performance of the price
return version of the Index, and, therefore, each monthly
Distribution will be subtracted from a notional portfolio of the
Index and the level of the price return version of the Index will
decrease with each such Distribution. The Index is calculated by
Nasdaq, Inc. and the levels for the price return version are
disseminated real-time under the Bloomberg ticker symbol "QUSOI".
The Index was established on September 26,
2016 and, therefore, has no performance history prior to
that date.
"USOI provides investors with an innovative investment
proposition: the potential to earn variable monthly income from an
investment linked to WTI crude oil," said Paul Somma, head of Exchange Traded Notes at
Credit Suisse. "USOI's performance relies on a covered call
strategy on USO shares that is designed to generate monthly
income. Like GLDI and SLVO before it, USOI provides investors
with a novel way to introduce monthly income into their portfolios
in exchange for capping appreciation in the underlying
ETF."
More information on the Credit Suisse
X-LinksTM Crude Oil Shares
Covered Call ETNs can be found on:
www.credit-suisse.com/etn
The ETNs may not be suitable for all investors and should
be purchased only by knowledgeable investors who understand the
risks of investing in the ETNs. The ETNs are subject to the credit
risk of Credit Suisse. You may receive less, and possibly
significantly less, than the principal amount of your investment at
maturity or upon repurchase or sale. There is no actual portfolio
of assets in which any investor in the ETNs has any ownership or
other interest. An investment in the ETNs involves significant
risks. For further information regarding risks, please see the
section entitled "Risk Factors" in the applicable pricing
supplement. Capitalized terms used but not defined herein have the
meanings set forth in the applicable pricing supplement.
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 47,170 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.
Credit Suisse AG ("Credit Suisse") has filed a registration
statement (including prospectus supplement and prospectus) with the
Securities and Exchange Commission, or SEC, for the offering to
which this press release relates. Before you invest, you
should read the applicable pricing supplement, the Prospectus
Supplement dated May 4, 2015 and
Prospectus dated May 4, 2015, to
understand fully the terms of the ETNs and other considerations
that are important in making a decision about investing in the
ETNs. You may get these documents without cost by visiting EDGAR on
the SEC website at www.sec.gov. Alternatively, Credit Suisse,
Credit Suisse Securities (USA) LLC
or any agent or dealer participating in an offering will arrange to
send you the applicable pricing supplement, Prospectus Supplement
and Prospectus if you so request by calling +1 800 320 1225.
USOI:
The relevant pricing supplement, including the Prospectus
dated May 4, 2015 and Prospectus
Supplement dated May 4, 2015:
https://notes.credit-suisse.com/csfbnoteslogin/etn/prospectus.asp?Ticker=USOI
You may access the 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.
Copyright © 2017, CREDIT SUISSE GROUP AG and/or its affiliates.
All rights reserved.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/credit-suisse-announces-the-launch-of-a-uso-covered-call-exchange-traded-note-the-credit-suisse-x-links--crude-oil-shares-covered-call-etns-300445995.html
SOURCE Credit Suisse AG