NEW YORK, Sept. 20, 2018 /PRNewswire/ -- Credit
Suisse AG announced today that it will implement a 1-for-10 reverse
split of its VelocityShares™ 3x Long Gold ETNs ("UGLD") and a
1-for-10 reverse split of its VelocityShares™ 3x Long Silver ETNs
("USLV"), each expected to be effective as of October 15, 2018.
The reverse splits will be effective at the open of trading on
October 15, 2018. UGLD and USLV will
each begin trading on the Nasdaq Stock Market on a reverse
split-adjusted basis on October 15,
2018. Holders of UGLD and USLV who purchased such ETNs prior
to October 15, 2018 will receive one
reverse split-adjusted ETN for every ten pre-reverse split ETNs,
respectively.
In addition, such purchasers that hold a number of ETNs not
evenly divisible by ten will receive a cash payment for any
fractional ETNs remaining (the "partials"). The cash amount
due on any partials will be determined on October 19, 2018 based on the respective closing
indicative values of UGLD and USLV on such date and will be paid by
Credit Suisse AG on or about October [24], 2018.
The closing indicative values of UGLD and USLV on October 14, 2018 will be multiplied by ten
to determine their respective reverse split-adjusted closing
indicative values. Following the reverse splits, UGLD and USLV will
have new CUSIPs but will retain their same exchange ticker
symbols.
The reverse splits will affect the trading denominations of UGLD
and USLV but they will not have any effect on the stated principal
amount of any ETN, except that the stated principal amount of each
will be reduced by the corresponding aggregate amount of any cash
payments for the "partials."
Illustration of a Reverse Split
The following table shows the effect of a 1-for-10 reverse split
on 100,000 ETNs:
|
Number of
ETNs
|
Hypothetical
Closing Indicative Value
|
Aggregate Closing
Indicative Value
|
Pre-Reverse
Split
|
100,000
|
$5.00
|
$500,000
|
1-for-10 Post-Reverse
Split
|
10,000
|
$50.00
|
$500,000
|
The above table illustrates the effect of the reverse split on
the number of ETNs and the hypothetical closing indicative value of
the ETNs. The closing indicative value is not the same as the
trading price of the ETNs.
None of the other exchange traded notes issued by Credit Suisse
AG are affected by this announcement.
Reverse
Split
|
Exchange Ticker
Symbol
|
Current CUSIP / New
CUSIP
|
VelocityShares™ 3x
Long Gold ETNs due October 14, 2031
|
UGLD
|
22542D688 /
22542D316
|
VelocityShares™ 3x
Long Silver ETNs due October 14, 2031
|
USLV
|
22539T597 /
22542D290
|
Press Contacts
Nicole Sharp, Credit Suisse AG,
telephone +1 212 325 8708, nicole.sharp@credit-suisse.com
Credit Suisse ETNs
Telephone +1 800 320 1225,
ETN.Desk@credit-suisse.com
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'). Our strategy builds on Credit Suisse's core strengths:
its position as a leading wealth manager, its specialist investment
banking capabilities and its strong presence in our home market of
Switzerland. We seek to follow a
balanced approach to wealth management, aiming to capitalize on
both the large pool of wealth within mature markets as well as the
significant growth in wealth in Asia
Pacific and other emerging markets, while also serving key
developed markets with an emphasis on Switzerland. Credit Suisse employs
approximately 45,430 people. The registered shares (CSGN) of Credit
Suisse AG'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.
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SOURCE Credit Suisse AG