a55990.htm - Generated by SEC Publisher for SEC Filing
 |
Filed pursuant to Rule 433
Registration Statement No. 333-180300-03
October 28, 2013 |
Credit Suisse MLP Index ETN
The Credit Suisse MLP Index Exchange Traded Notes (the “ETNs”) are senior, unsecured debt securities issued by Credit Suisse AG (“Credit Suisse”), acting through its Nassau Branch that are linked to the
return of the Cushing® 30 MLP Index (the “Index”). The ETNs are designed to provide investors with exposure to the Cushing® 30 MLP Index and may pay a variable quarterly coupon linked to the cash distributions
paid on the constituent MLPs in the Index, as reduced by the investor fee. The ETNs are listed on NYSE Arca under the ticker symbol “MLPN.”1 The ETNs should be purchased only by knowledgeable investors who understand the potential
consequences of investing in the ETNs.
|
|
|
|
| ETN Details |
|
| ETN Ticker |
MLPN |
| Intraday indicative value ticker |
MLPN.IV |
| Bloomberg index ticker |
MLPX |
| CUSIP/ISIN |
22542D852/US22542D8520 |
| Primary exchange |
NYSE Arca |
| ETN annual investor fee |
0.85%* |
| 12-month yield |
4.65%** |
| 12-month total return |
22.89%*** |
| 12-month price return |
17.43% |
| ETN inception date |
April 13, 2010 |
| Underlying index |
Cushing® 30 MLP Index |
| *Because of daily
compounding, the actual investor fee realized may exceed 0.85% per annum. |
| **Actual coupons
over previous 12 months ended 9/30/2013 divided by indicative value of MLPN on 9/30/2013. |
| ***Return based
on the change in the indicative value of the ETN from 9/28/2012- 9/30/2013 plus any coupon payments paid to holders of the
ETN during that period. |
| Index Returns (as of 9/30/2013) |
|
| 1 month |
2.44% |
| 3 month |
-1.15% |
| 1 year |
17.44% |
| Since Inception Annualized* |
22.15% |
| *Index Inception
date was November 1, 2009 |
| Index Statistics (9/30/12-9/30/2013) |
| Correlation to S&P 500 TR index |
0.64 |
| Correlation to Barclays |
|
| US Aggregate TR index |
-0.05 |
| Annualized volatility |
15.87% |
| 1-Year Sharpe Ratio* |
1.09 |
| |
| *Sharpe ratio
calculated using the Federal Funds |
| Effective Rate as of September 30, 2013. |
1Credit Suisse has no obligation to maintain any listing on
NYSE Arca or any other exchange and we may delist the ETNs at any time.
Strategy Focus
| n | | MLPs are publicly traded limited or general partnership interests. MLPs included in
the Index hold mid-stream energy infrastructure assets in North America. |
| n | | Characteristics of MLPs as an asset class: |
| – | Income: Although the ETN holders have no interest or rights in the underlying MLPs,
they may receive cash distributions as reduced by the investor fee. |
| – | Essential Infrastructure: The mid-stream energy sector
involves the gathering, processing, transporting, and storage of crude oil and natural gas. |
| – | Growing asset class: Cash flows generated are generally
thought to be predictable with growth potential. |
| – | Inflation Protection: If distributions on the MLPs grow,
they may provide an effective inflation hedge. |
Index Performance (November 1, 2009 - September 30, 2013)
The above graph sets forth the historical performance of the Index from
November 1, 2009 through September 30, 2013. Historical performance is not indicative of future performance. The above graph does
not reflect the accrued fee amount or the potential coupons associated with the ETNs, which may increase or decrease the amount
of the return on the ETNs at maturity or upon repurchase by Credit Suisse.
| |
|
|
| For More Information |
|
|
| ETN Desk: 212 538 7333 |
Email: ETN.Desk@credit-suisse.com |
Website: www.credit-suisse.com/etn |
Index Overview
| n | The Index is an equally-weighted index that uses a formulaic,
proprietary valuation methodology (SValuES©) to rank the MLPs for inclusion in the index. |
| n | The Index only tracks midstream MLPs, and does not hold any
upstream or downstream MLPs, which may be more sensitive to movements in commodity prices. |
| n | The SValuES© formulaic ranking system emphasizes
the importance of balance sheet, cash flow, and cash distribution metrics rather than market capitalization. |
| n | The MLPs underlying the Index are reset to equal weighting
on a quarterly basis. |
MLPN Coupon Amounts
Selected Investment Considerations
| – | The
ETNs do not
have a minimum
payment at
maturity or
daily repurchase
value and
are fully
exposed to
any decline
in the Index.
Furthermore,
the return
at maturity
or upon repurchase
will be reduced
by the fees
and charges
associated
with the ETNs.
Therefore,
the level
of the Index
must increase
by an amount
sufficient
to offset
the applicable
fees. |
| – | You
will not receive
fixed periodic
payments on
the ETNs,
and your coupon
payments may
vary and may
be zero. |
| – | We
have listed
the ETNs on
NYSE Arca
under the
symbol “MLPN”.
We expect
that investors
will purchase
and sell the
ETNs primarily
in the secondary
market. We
have no obligation
to maintain
this listing
on NYSE Arca
or any listing
on any other
exchange,
and may delist
the ETNs at
any time. |
| – | The
indicative
value of the
ETNs is not
the same as
the closing
price or any
other trading
price of the
ETNs in the
secondary
market. The
trading price
of the ETNs
at any time
is the price
at which you
may be able
to sell your
ETNs in the
secondary
market at
such time,
if one exists.
The trading
price of the
ETNs at any
time may vary
significantly
from the indicative
value of such
ETNs at such
time. Before
trading in
the secondary
market, you
should compare
the indicative
value with
the then-prevailing
trading price
of the ETNs. |
| – | Although
the return
on the ETNs
will be based
on the performance
of the Index,
the payment
of any amount
due on the
ETNs, including
any payment
upon repurchase
or at maturity,
and coupon
payments,
if any, is
subject to
the credit
risk of Credit
Suisse. Investors
are dependent
on |
Credit
Suisse’s ability to pay all amounts due on the ETNs, and therefore investors are subject to our credit risk. In addition,
any decline in our credit ratings, any adverse changes in the market’s view of our creditworthiness or any increase in our
credit spreads is likely to adversely affect the market value of the ETNs prior to maturity.
| – | You
will not have
any partnership
interests
or other rights
in the MLPs
underlying
the Index. |
| – | MLPs
are concentrated
in the energy
industry.
Some of the
MLPs underlying
the Index
may be smaller,
non-diversified
businesses
that are exposed
to the risks
associated
with such
businesses. |
| – | The
Index may
not be representative
of the entire
mid-stream
energy infrastructure
industry. |
| – | Tax consequences
of the ETNs are uncertain and potential investors
should consult their tax advisors regarding the
U.S. federal income tax consequences of an investment
in the ETNs. |
| – | We
have the right
to repurchase
your ETNs
in whole but
not in part
if the principal
amount of
the ETNs outstanding
is $10,000,000
or less. In
addition,
we have the
right to repurchase
your ETNs
in whole and
not in part
upon the occurrence
of certain
events as
described
in the applicable
pricing supplement.
The amount
you may receive
upon a repurchase
by Credit
Suisse may
be less than
the amount
you would
receive on
your investment
at maturity
or if you
had elected
to have us
repurchase
your ETNs
at a time
of your choosing. |
An
investment in the ETNs involves significant risks. The selected investment considerations herein are not intended as a complete
description of all risks associated with the ETNs. For further information regarding risks, please see the section entitled “Risk
Factors” in the applicable pricing supplement.
Sources:
Swank Capital, LLC, Bloomberg. All data was obtained from publicly available information, internally developed data and other
third party sources believed to be reliable. Credit Suisse AG has not sought to independently verify information obtained from
public and third-party sources. The Index is unmanaged and does not reflect the deduction of fees and expenses. Investors cannot
invest directly in an index.
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 of the ETNs. Before you invest, you should read the applicable
pricing supplement, the Prospectus Supplement dated March 23, 2012, and Prospectus dated March 23, 2012, 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 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 toll-free 1 (800) 221-1037.
You
may access the applicable pricing supplement related to the ETNs discussed herein on the SEC website at: http://www.sec.gov/Archives/edgar/data/1053092/000089109213007069/e55014_424b2.htm
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
©2013. Credit Suisse Group AG and/or its affiliates. All rights reserved.
| For More Information |
|
|
| ETN Desk: 212 538 7333 |
Email: ETN.Desk@credit-suisse.com |
Website: www.credit-suisse.com/etn |