Subject to the minimum redemption amount and other conditions, Credit Suisse AG will continue to accept investors’ offers for repurchase of the ETNs up to and including November 28, 2016 pursuant to the terms of the ETNs as described in the Pricing Supplement. If you wish to offer your ETNs to Credit Suisse AG for repurchase, you and your broker must follow the procedures set forth in the Pricing Supplement, which can be accessed on the Securities and Exchange Commission website at www.sec.gov
Upon any such repurchase of the ETNs at the investors’ option, the terms of the ETNs specify that investors will receive a cash payment equal to the daily repurchase value, which is based on the closing indicative value of the ETNs on the applicable valuation date for such repurchase, all as described in the Pricing Supplement.
Only the Credit Suisse X-Links Cushing® MLP Infrastructure ETNs due April 20, 2020 (NYSE Arca: MLPN) are affected by this announcement.
As disclosed in the Risk Factors section of the Pricing Supplement, the market value of the ETNs may be influenced by, among other things, the levels of actual and expected supply and demand for the ETNs in the secondary market. It is possible that the delisting and repurchase of the ETNs, as described above, may influence the market value of the ETNs. Credit Suisse AG cannot predict with certainty what impact, if any, the delisting and repurchase of the ETNS 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 has declined from the time of purchase or is no longer present in the market place.
As disclosed in the Risk Factors section and the Use of Proceeds and Hedging section of the Pricing Supplement, we or our affiliates may have acquired and may dispose of the securities of one or more MLPs that are included in the index underlying the ETNs (the “Index”, and such securities the “Constituent MLPs”), or listed or over-the-counter options contracts in, or other derivatives or synthetic instruments related to, the Index or one or more Constituent MLPs, 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 or any Constituent MLPs, we or our affiliates may liquidate a portion or all of those holdings on or before the valuation date. This activity may adversely affect the level of the Index and, as a consequence, the value of the ETNs and the amount payable upon repurchase of the ETNs by Credit Suisse AG. Moreover, this hedging activity may result in us or our affiliates receiving a profit, even if the value of the ETNs declines.