NEW YORK, Dec. 9, 2016 /PRNewswire/ -- Credit Suisse
AG announced today that it is reducing the Minimum Redemption
Amount for early redemptions by investors of the following Exchange
Traded Notes (the "ETNs") pursuant to their terms:
ETN
|
CUSIP
|
VelocitySharesTM 3x Inverse Crude Oil
ETNs linked to the S&P GSCI® Crude Oil Index ER due
February 9, 2032
|
22542D548
|
VelocitySharesTM 3x Long Crude Oil ETNs
linked to the S&P GSCI® Crude Oil Index ER due
February 9, 2032
|
22539T316
|
As described in the related pricing supplement for the ETNs (the
"Pricing Supplement"), subject to certain restrictions, investors
may exercise their right to redeem the ETNs by offering for early
redemption at least 25,000 ETNs, or an integral multiple of 25,000
ETNs in excess thereof, to Credit Suisse AG at one time (the
"Minimum Redemption Amount").
As set forth in the Pricing Supplement, Credit Suisse AG may,
from time to time, reduce, in part or in whole, the Minimum
Redemption Amount. With effect from the date hereof, Credit
Suisse AG is reducing the Minimum Redemption Amount from 25,000
ETNs to 500 ETNs. To satisfy the Minimum Redemption
Amount, an investor's broker or other person with whom they hold
the ETNs may bundle an investor's ETNs for early redemption with
those of other investors to reach this Minimum Redemption Amount of
500 ETNs.
Investors may exercise their early redemption right by causing
their broker or other person with whom they hold the ETNs to
deliver via email a completed redemption notice (as set forth in
the Pricing Supplement) to Janus Distributors LLC (the "Redemption
Agent") at ETNorders@velocityshares.com. If the properly
completed redemption notice is delivered to the Redemption Agent
prior to 4:00 p.m. New York City time, on any business day, and
the Redemption Agent responds by sending your broker an
acknowledgment of the Redemption Notice accepting your redemption
request by 7:30 p.m., New York City time, the immediately following
index business day for the applicable ETN will be the applicable
"Early Redemption Valuation Date". Otherwise, the second
following index business day for such ETN will be the applicable
Early Redemption Valuation Date. See "Specific Terms of the
ETNs—Redemption Procedures" in the Pricing Supplement for
additional information.
If an investor elects an early redemption, and the requirements
for an early redemption are met, the investor will receive a cash
payment per ETN on the Early Redemption Date equal to the greater
of: (A) zero and (B)(1) the closing indicative value for such ETN
on the Early Redemption Valuation Date minus (2) the early
redemption charge of 0.05% times the closing indicative
value for such ETN on the Early Redemption Valuation Date. Subject
to market disruption events, the third business day following an
Early Redemption Valuation Date will be the "Early Redemption
Date."
The intraday indicative value and closing indicative value for
the ETNs are calculated and published on each index business day
under the following indicative value ticker symbols in the chart
below. The OTC Market ticker symbol for each ETN is also set
forth in the chart below.
ETN
|
CUSIP
|
Indicative Value
Ticker Symbol on Bloomberg
|
Indicative Value
Ticker Symbol on Yahoo! Finance
|
OTC Market Ticker
Symbol
|
VelocitySharesTM 3x Inverse Crude Oil
ETNs linked to the S&P GSCI® Crude Oil Index ER due
February 9, 2032
|
22542D548
|
DWTIIV
<INDEX>
|
^DWTI-IV
|
DWTIF
|
VelocitySharesTM 3x Long Crude Oil ETNs
linked to the S&P GSCI® Crude Oil Index ER due
February 9, 2032
|
22539T316
|
UWTIIV
<INDEX>
|
^UWTI-IV
|
UWTIF
|
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, 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.
For a detailed description of the early redemption mechanics,
see the Pricing Supplement, which can be accessed on the Securities
and Exchange Commission ("SEC") 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 and the
VelocitySharesTM 3x Long Crude Oil ETNs linked to the
S&P GSCI® Crude Oil Index ER due February 9, 2032 are affected by this
announcement.
There is no assurance that a trading market for the ETNs will
exist at any time. If a secondary market for the ETNs does
exist, the trading price of the ETNs may be influenced by, among
other things, the levels of actual and expected supply and demand
for the ETNs. Investors may suffer substantial losses if they
are unable to sell the ETNs in the secondary market or if they are
only able to sell the ETNs at prices substantially less than the
price they paid, the ETNs' intraday indicative value or the ETNs'
closing indicative value. It is possible that the reduction
of the Minimum Redemption Amount of the ETNs, as described above,
may influence the price for which a secondary buyer will purchase
the ETNs. Credit Suisse AG cannot predict with certainty what
impact, if any, the reduction of the Minimum Redemption Amount of
the ETNs will have on the 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, 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 in the secondary
market.
As disclosed in the Risk Factors section and the Supplemental
Use of Proceeds and Hedging section of the Pricing Supplement, we
or our affiliates may have acquired or disposed of, as applicable,
and may dispose of or acquire, as applicable, the futures contracts
included in the S&P GSCI® Crude Oil Index ER (the
"Index") for each ETN, or listed or over-the-counter options
contracts in, or other derivatives or synthetic instruments related
to, the Index 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, we or our affiliates may unwind a
portion or all of such position during the term of the ETNs.
This activity may adversely affect the level of the Index and, as a
consequence, the value of the ETNs and the amount payable on the
ETNs. 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