NEW YORK,
July 1, 2016
/PRNewswire/ -- Credit Suisse announced today that it
will place conditions on its acceptance of offers to purchase
VelocityShares™ Daily Inverse VIX Short Term ETNs (Ticker
Symbol: "XIV").
Beginning on July 5, 2016,
Credit Suisse may issue additional ETNs on a weekly basis and may
condition its acceptance of a counterparty's offer to purchase the
ETNs on its agreement to sell to Credit Suisse certain hedging
instruments consistent with Credit Suisse's hedging strategy,
including but not limited to swaps. Any such hedging instruments
will be executed on the basis of the indicative value of the ETNs
at that time, will not reflect any premium or discount in the
trading price of the ETNs over their indicative value and will be
on terms acceptable to Credit Suisse, including the counterparty
meeting Credit Suisse's creditworthiness requirements, margin
requirements, minimum size and duration requirements and such other
terms as Credit Suisse deems appropriate in its sole discretion. In
addition, Credit Suisse may from time to time issue the ETNs into
inventory of its affiliates.
This action does not affect the Early Redemption rights of
noteholders as described in the pricing supplement. The other ETNs
issued by Credit Suisse are not affected by this action.
As disclosed in the pricing supplement relating to the
ETNs under the heading "Risk Factors—The market price of your ETNs
may be influenced by many unpredictable factors," the market value
of the ETNs may be influenced by, among other things, the levels of
supply and demand for the ETNs. It is possible that the issuance of
the ETNs, as described above, may influence the market value of the
ETNs. In addition, Credit Suisse is under no obligation to issue or
sell additional ETNs at any time, and if Credit Suisse does sell
additional ETNs, it may limit or restrict such sales, and Credit
Suisse may stop and subsequently resume selling additional ETNs at
any time. See "Risk Factors—We may sell additional ETNs of any
series at different prices but we are under no obligation to issue
or sell additional ETNs of any series at any time, and if we do
sell additional ETNs of any series, we may limit or restrict such
sales, and we may stop and subsequently resume selling additional
ETNs of such series at any time." Credit Suisse cannot predict with
certainty what impact, if any, this announcement 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 is no longer present in
the market place or the ETNs are accelerated (including at our
option), in which case investors will receive a cash payment in an
amount equal to the closing indicative value on the accelerated
valuation date.
The pricing supplement relating to the ETNs can be found
on EDGAR, the SEC website at: www.sec.gov.
Credit Suisse ETNs
Telephone +1 800
320 1225, ETN.Desk@credit-suisse.com
The ETNs may not be suitable for all investors and should
be purchased only by knowledgeable investors who understand the
potential consequences 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. Coupon payments
on the ETNs will vary and could be zero. There is no actual
portfolio of assets in which any investor in the ETNs has any
ownership or other interest. Investors in the ETNs do not have
voting rights, distribution rights or other rights with respect to
the assets included in the tracked indices. 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.
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 47,760 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 has filed a registration statement
(including a 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 the Prospectus dated May 4, 2015 that Credit Suisse has filed with the
SEC for more complete information about Credit Suisse and this
offering. You may obtain these documents without cost by visiting
EDGAR on the SEC website at www.sec.gov. Alternatively, Credit
Suisse or any agent or any dealer participating in this offering
will arrange to send you the applicable pricing supplement and the
prospectus supplement and prospectus if you so request by calling
1-800-320-1225.
"VelocityShares" and the VelocityShares logo are
registered trademarks of Janus Index & Calculation Services
LLC, as successor to Velocity Index & Calculation
Services.
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