CALCULATION OF REGISTRATION FEE | ||||
Title | Maximum Aggregate Offering Price | Amount of Registration Fee | ||
Notes | $5,319,460.00 | $685.15 |
Term Sheet INCOME-1 (To the Prospectus dated March 23, 2012, the Prospectus Supplement dated March 23, 2012, and the Product Supplement STOCK INCOME-1 dated August 8, 2014) | Filed Pursuant to Rule 424(b)(2) Registration Statement No. 333-180300-03 |
531,946 Units $10 principal amount per unit CUSIP No. 22545F250 | Pricing Date Settlement Date Maturity Date | August 28, 2014 September 5, 2014 August 28, 2020 |
Income Notes Linked to a Basket of 20 Common Equity Securities § Maturity of approximately six years § The notes provide annual coupon payments (each, a “Coupon Payment”) § The notes will pay interest at a minimum rate of 1.00% per year. If, however, at least 14 of the 20 specified common equity securities (the “Basket Stocks”) have not decreased in value from the pricing date as measured at the close of a Coupon Determination Date, the notes will pay interest at a maximum rate of 5.56% per year on the relevant Coupon Payment Date. § The payment at maturity will be the principal amount plus the final Coupon Payment § All payments on the notes subject to the credit risk of Credit Suisse AG § Limited secondary market liquidity, with no exchange listing § The notes are senior unsecured debt securities and are not insured or guaranteed by the U.S. Federal Deposit Insurance Corporation or any other governmental agency of the United States, Switzerland or any other jurisdiction | |||
The notes are being issued by Credit Suisse AG (“Credit Suisse”). There are important differences between the notes and a conventional debt security, including different investment risks and certain additional costs. See “Risk Factors” beginning on page TS-6 of this term sheet and beginning on page PS-5 of product supplement STOCK INCOME-1.
The initial estimated value of the notes as of the pricing date is $9.73 per unit, which is less than the public offering price listed below. See “Summary” on the following page, “Risk Factors” beginning on page TS-6 of this term sheet and “Structuring the Notes” on page TS-26 of this term sheet for additional information. The actual value of your notes at any time will reflect many factors and cannot be predicted with accuracy.
_________________________
None of the Securities and Exchange Commission (the “SEC”), any state securities commission, or any other regulatory body has approved or disapproved of these securities or determined if this Note Prospectus (as defined below) is truthful or complete. Any representation to the contrary is a criminal offense.
_________________________
Per Unit | Total | |||||||
Public offering price(1) | $ | 10.00 | $ | 5,319,460.00 | ||||
Underwriting discount | $ | 0.25 | $ | 132,986.50 | ||||
Proceeds, before expenses, to Credit Suisse | $ | 9.75 | $ | 5,186,473.50 |
(1) | Plus accrued interest from the scheduled settlement date, if settlement occurs after that date. |
The notes:
Are Not FDIC Insured | Are Not Bank Guaranteed | May Lose Value |
Merrill Lynch & Co.
August 28, 2014
Income Notes Linked to a Basket of 20 Common Equity Securities, due August 28, 2020 |
Summary
The Income Notes Linked to a Basket of 20 Common Equity Securities, due August 28, 2020 (the “notes”) are our senior unsecured debt securities. The notes are not guaranteed or insured by the Federal Deposit Insurance Corporation or any other governmental agency of the United States, Switzerland or any other jurisdiction and are not secured by collateral. The notes will rank equally with all of our other unsecured and unsubordinated debt. All payments due on the notes, including the repayment of principal, will be subject to the credit risk of Credit Suisse. The notes provide you with an annual Coupon Payment. On each Coupon Payment Date, you will receive at least the Minimum Coupon Payment. If, however, the Observation Values of at least 14 of the 20 Basket Stocks on a Coupon Determination Date are greater than or equal to their respective Starting Values, then you will receive the Maximum Coupon Payment on the relevant Coupon Payment Date. Payments on the notes will be calculated based on the $10 principal amount per unit and will depend on our credit risk and the performance of the Basket Stocks. See “Terms of the Notes” below.
The economic terms of the notes (including the Maximum Coupon Payment) are based on the rate we are currently paying to borrow funds through the issuance of market-linked notes (our “internal funding rate”) and the economic terms of certain related hedging arrangements. Our internal funding rate for market-linked notes is typically lower than a rate reflecting the yield on our conventional debt securities of similar maturity in the secondary market (our “secondary market credit rate”). This difference in borrowing rate, as well as the underwriting discount and the hedging related charge described below, reduced the economic terms of the notes to you and the initial estimated value of the notes on the pricing date. These costs will be effectively borne by you as an investor in the notes, and will be retained by us and MLPF&S or any of our respective affiliates in connection with our structuring and offering of the notes. Due to these factors, the public offering price you pay to purchase the notes is greater than the initial estimated value of the notes.
On the cover page of this term sheet, we have provided the initial estimated value for the notes. This estimated value was determined based on our valuation of the theoretical components of the notes in accordance with our pricing models. These include a theoretical bond component valued using our internal funding rate, and theoretical individual option components valued using mid-market pricing. You will not have any interest in, or rights to, the theoretical components we used to determine the estimated value of the notes. For more information about the initial estimated value and the structuring of the notes, see “Structuring the Notes” on page TS-26.
The Market Measure consists of the following common equity securities:
Basket Stocks | Bloomberg Symbols | Starting Values ($) |
AbbVie Inc. | ABBV | $55.60 |
BHP Billiton Limited | BHP | $68.23 |
Comcast Corporation | CMCSA | $54.52 |
Eaton Corporation plc | ETN | $69.57 |
Ford Motor Company | F | $17.42 |
Facebook, Inc. | FB | $73.86 |
FireEye, Inc. | FEYE | $30.00 |
Helmerich & Payne, Inc. | HP | $103.07 |
JPMorgan Chase & Co. | JPM | $59.16 |
Kraft Foods Group, Inc. | KRFT | $58.48 |
McDonald’s Corporation | MCD | $94.14 |
Och-Ziff Capital Management Group LLC | OZM | $12.42 |
Philip Morris International Inc. | PM | $85.26 |
PPL Corporation | PPL | $34.45 |
Sempra Energy | SRE | $104.88 |
SunEdison, Inc. | SUNE | $22.09 |
Texas Instruments Incorporated | TXN | $48.02 |
Under Armour, Inc. | UA | $69.68 |
Verizon Communications Inc. | VZ | $49.41 |
Exxon Mobil Corporation | XOM | $99.57 |
Income Notes | TS-2 |
Income Notes Linked to a Basket of 20 Common Equity Securities, due August 28, 2020 |
Terms of the Notes | Coupon Payment Determination | |
Issuer: | Credit Suisse AG (“Credit Suisse”), acting through its London Branch. | On each Coupon Determination Date, the Coupon Payment will be determined as follows: The Coupon Payment will equal the Minimum Coupon Payment. |
Principal Amount: | $10.00 per unit | |
Term: | Approximately six years | |
Market Measure: | A basket of 20 common equity securities (each a “Basket Stock”) as described in “The Basket Stocks” section below. | |
Starting Value: | For each Basket Stock, its Closing Market Price on the pricing date, as set forth on page TS-2 above. | |
Observation Value: | For each Basket Stock, its Closing Market Price on the applicable Coupon Determination Date, multiplied by its Price Multiplier on that day. Each Coupon Determination Date is subject to postponement if a Market Disruption Event occurs, as described beginning on page PS-17 of product supplement STOCK INCOME-1. | |
Coupon Determination Dates: | Annually, on August 21, 2015, August 22, 2016, August 21, 2017, August 21, 2018, August 21, 2019 and August 21, 2020. | |
Coupon Payment Dates: | Annually, on August 28, 2015, August 29, 2016, August 28, 2017, August 28, 2018, August 28, 2019 and August 28, 2020. | |
Minimum Coupon Payment: | The product of 1.00% and the principal amount. | |
Maximum Coupon Payment: | The product of 5.56% and the principal amount. | |
Payment at Maturity: | At maturity, we will pay the principal amount of the notes, plus the final Coupon Payment. | |
Price Multiplier: | 1 for each Basket Stock, subject to adjustment for certain corporate events relating to the Basket Stocks as described beginning on page PS-19 of product supplement STOCK INCOME-1. | |
Fees and Charges: | The underwriting discount of $0.25 per unit listed on the cover page and the hedging related charge of $0.075 per unit described in “Structuring the Notes” on page TS-26. | |
Joint Calculation Agents: | Credit Suisse International and Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”), acting jointly. |
Income Notes | TS-3 |
Income Notes Linked to a Basket of 20 Common Equity Securities, due August 28, 2020 |
The terms and risks of the notes are contained in this term sheet and in the following:
§ | Product supplement STOCK INCOME-1 dated August 8, 2014: |
§ | Prospectus supplement and prospectus dated March 23, 2012: |
These documents (together, the “Note Prospectus”) have been filed as part of a registration statement with the SEC, which may, without cost, be accessed on the SEC website as indicated above or obtained from MLPF&S by calling 1-866-500-5408. Before you invest, you should read the Note Prospectus, including this term sheet, for information about us and this offering. Any prior or contemporaneous oral statements and any other written materials you may have received are superseded by the Note Prospectus. Capitalized terms used but not defined in this term sheet have the meanings set forth in product supplement STOCK INCOME-1. Unless otherwise indicated or unless the context requires otherwise, all references in this document to “we,” “us,” “our,” or similar references are to Credit Suisse.
Investor Considerations
You may wish to consider an investment in the notes if: | The notes may not be an appropriate investment for you if: | |
§ You anticipate that the Observation Values of at least 14 of the Basket Stocks will not be less than their respective Starting Values on each or most of the Coupon Determination Dates. § You seek interest payments on your investment. § You accept that the return on the notes will be limited to the Coupon Payments. § You accept that the Coupon Payment applicable to each annual interest period is uncertain and may be limited to the Minimum Coupon Payment. § You are willing to forgo guaranteed interest payments that are paid on traditional interest bearing debt securities. § You are willing to forgo dividends or other benefits of owning shares of the Basket Stocks. § You are willing to accept a limited market for sales prior to maturity, and understand that the market prices for the notes, if any, will be affected by various factors, including our actual and perceived creditworthiness, our internal funding rate and fees and charges on the notes. § You are willing to assume our credit risk, as issuer of the notes, for all payments under the notes, including the payment at maturity. | § You anticipate that the Observation Values of seven or more of the Basket Stocks will be less than their respective Starting Values on each or most of the Coupon Determination Dates. § In addition to the Minimum Coupon Payments, you seek an additional guaranteed return above the principal amount. § You seek an uncapped return on your investment. § You seek to receive dividends or other distributions paid on the Basket Stocks. § You seek an investment for which there will be a liquid secondary market. § You are unwilling or are unable to take market risk on the notes or to take our credit risk as issuer of the notes. |
We urge you to consult your investment, legal, tax, accounting, and other advisors before you invest in the notes.
Income Notes | TS-4 |
Income Notes Linked to a Basket of 20 Common Equity Securities, due August 28, 2020 |
Hypothetical Coupon Payment Calculations
Examples
Set forth below are examples of the calculations of the hypothetical Coupon Payments determined on three different Coupon Determination Dates, based upon the minimum rate of 1.00% per annum, the maximum rate of 5.56% per annum, the hypothetical Starting Value of 100.00 for each Basket Stock, and the hypothetical Observation Values on the Coupon Determination Dates.
The hypothetical Starting Value of 100.00 for each Basket Stock used in these examples has been chosen for illustrative purposes only. The actual Starting Value of each Basket Stock is its Closing Market Price on the pricing date, as set forth on page TS-2 above. For recent actual prices of the Basket Stocks, see “The Basket Stocks” section below. In addition, all payments on the notes are subject to issuer credit risk.
On the first Coupon Determination Date, only five of the Basket Stocks have Observation Values that are greater than or equal to their respective Starting Values. As a result, the Coupon Payment on the applicable Coupon Payment Date is the Minimum Coupon Payment of $0.100 per unit.
On the second Coupon Determination Date, fourteen of the Basket Stocks have Observation Values that are greater than or equal to their respective Starting Values. As a result, the Coupon Payment on the applicable Coupon Payment Date is the Maximum Coupon Payment of $0.556 per unit.
On the third Coupon Determination Date, fifteen of the Basket Stocks have Observation Values that are greater than or equal to their respective Starting Values. As a result, the Coupon Payment on the applicable Coupon Payment Date is the Maximum Coupon Payment of $0.556 per unit. In this example, even though the average increase in the prices of the Basket Stocks is substantially higher, the Coupon Payment does not exceed the Maximum Coupon Payment of $0.556 per unit.
These examples and the table below are for illustration only and reflect hypothetical Coupon Payments only for the first three Coupon Payment Dates. The Coupon Payment on one or more Coupon Payment Dates may be limited to the Minimum Coupon Payment.
August 21, 2015 | August 22, 2016 | August 21, 2017 | |||||
Basket Stocks | Starting Value | Observation Value | Observation Value Greater Than or Equal to Starting Value? | Observation Value | Observation Value Greater Than or Equal to Starting Value? | Observation Value | Observation Value Greater Than or Equal to Starting Value? |
AbbVie Inc. | 100.00 | 80.87 | No | 90.87 | No | 90.87 | No |
BHP Billiton Limited | 100.00 | 97.55 | No | 97.55 | No | 97.55 | No |
Comcast Corporation | 100.00 | 90.22 | No | 90.22 | No | 90.22 | No |
Eaton Corporation plc | 100.00 | 99.49 | No | 99.49 | No | 99.49 | No |
Ford Motor Company | 100.00 | 90.32 | No | 90.32 | No | 120.03 | Yes |
Facebook, Inc. | 100.00 | 93.02 | No | 107.99 | Yes | 131.15 | Yes |
FireEye, Inc. | 100.00 | 97.26 | No | 104.22 | Yes | 148.80 | Yes |
Helmerich & Payne, Inc. | 100.00 | 90.11 | No | 102.36 | Yes | 157.90 | Yes |
JPMorgan Chase & Co. | 100.00 | 98.00 | No | 111.12 | Yes | 125.12 | Yes |
Kraft Foods Group, Inc. | 100.00 | 93.72 | No | 108.83 | Yes | 125.74 | Yes |
McDonald’s Corporation | 100.00 | 94.23 | No | 108.89 | Yes | 121.68 | Yes |
Och-Ziff Capital Management Group LLC | 100.00 | 97.96 | No | 97.96 | No | 97.96 | No |
Philip Morris International Inc. | 100.00 | 91.87 | No | 103.04 | Yes | 125.53 | Yes |
PPL Corporation | 100.00 | 90.37 | No | 108.46 | Yes | 138.77 | Yes |
Sempra Energy | 100.00 | 92.82 | No | 105.10 | Yes | 140.58 | Yes |
SunEdison, Inc. | 100.00 | 129.99 | Yes | 109.99 | Yes | 154.05 | Yes |
Texas Instruments Incorporated | 100.00 | 148.42 | Yes | 108.42 | Yes | 149.27 | Yes |
Under Armour, Inc. | 100.00 | 152.46 | Yes | 102.46 | Yes | 120.13 | Yes |
Verizon Communications Inc. | 100.00 | 130.40 | Yes | 100.40 | Yes | 135.23 | Yes |
Exxon Mobil Corporation | 100.00 | 141.60 | Yes | 101.60 | Yes | 146.88 | Yes |
Number of Basket Stocks at or above their respective Starting Values | 5 | 14 | 15 | ||||
Hypothetical Coupon Rate | 1.00% | 5.56% | 5.56% | ||||
Hypothetical Coupon Payment | $0.100 per unit | $0.556 per unit | $0.556 per unit |
Income Notes | TS-5 |
Income Notes Linked to a Basket of 20 Common Equity Securities, due August 28, 2020 |
There are important differences between the notes and a conventional debt security. An investment in the notes involves significant risks, including those listed below. You should carefully review the more detailed explanation of risks relating to the notes in the “Risk Factors” sections beginning on page PS-5 of product supplement STOCK INCOME-1 identified above. We also urge you to consult your investment, legal, tax, accounting, and other advisors before you invest in the notes.
§ | Depending on the performance of the Basket Stocks as measured at the close of each Coupon Determination Date, the Coupon Payments on one or more Coupon Payment Dates may be limited to the Minimum Coupon Payment. |
§ | Your return on the notes may be less than the yield you could earn by owning a conventional fixed or floating rate debt security of comparable maturity. |
§ | Payments on the notes are subject to our credit risk, and actual or perceived changes in our creditworthiness are expected to affect the value of the notes. If we become insolvent or are unable to pay our obligations, you may lose your entire investment. |
§ | Your investment return is limited to the return represented by the Maximum Coupon Payment and may be less than a comparable investment directly in the Basket Stocks. |
§ | The initial estimated value of the notes is an estimate only, determined as of a particular point in time by reference to our proprietary pricing models. These pricing models consider certain factors, such as our internal funding rate on the pricing date, interest rates, volatility and time to maturity of the notes, and they rely in part on certain assumptions about future events, which may prove to be incorrect. Because our pricing models may differ from other issuers’ valuation models, and because funding rates taken into account by other issuers may vary materially from the rates used by us (even among issuers with similar creditworthiness), our estimated value may not be comparable to estimated values of similar notes of other issuers. |
§ | Our internal funding rate for market-linked notes is typically lower than our secondary market credit rates, as further described in “Structuring the Notes” on page TS-26. Because we use our internal funding rate to determine the value of the theoretical bond component, if on the pricing date our internal funding rate is lower than our secondary market credit rates, the initial estimated value of the notes will be greater than if we had used our secondary market credit rates in valuing the notes. |
§ | The public offering price you pay for the notes exceeds the initial estimated value. This is due to, among other transaction costs, the inclusion in the public offering price of the underwriting discount and the hedging related charge, as further described in “Structuring the Notes” on page TS-26. |
§ | Assuming no change in market conditions or other relevant factors after the pricing date, the market value of your notes may be lower than the price you paid for them and lower than the initial estimated value. This is due to, among other things, the inclusion in the public offering price of the underwriting discount and the hedging related charge and the internal funding rate we used in pricing the notes, as further described in "Structuring the Notes" on page TS-26. These factors, together with customary bid ask spreads, other transaction costs and various credit, market and economic factors over the term of the notes, including changes in the prices of the Basket Stocks, are expected to reduce the price at which you may be able to sell the notes in any secondary market and will affect the value of the notes in complex and unpredictable ways. |
§ | A trading market is not expected to develop for the notes. Neither we nor MLPF&S is obligated to make a market for, or to repurchase, the notes. The initial estimated value does not represent a minimum or maximum price at which we, MLPF&S or any of our affiliates would be willing to purchase your notes in any secondary market (if any exists) at any time. MLPF&S has advised us that any repurchases by them or their affiliates will be made at prices determined by reference to their pricing models and at their discretion, and these prices will include MLPF&S’s trading commissions and mark-ups. If you sell your notes to a dealer other than MLPF&S in a secondary market transaction, the dealer may impose its own discount or commission. MLPF&S has also advised us that, at its discretion and for your benefit, assuming no changes in market conditions from the pricing date, MLPF&S may offer to buy the notes in the secondary market at a price that may exceed the initial estimated value of the notes for a short initial period after the issuance of the notes. That higher price reflects costs that were included in the public offering price of the notes, and that higher price may also be initially used for account statements or otherwise. There is no assurance that any party will be willing to purchase your notes at any price in any secondary market. |
§ | Our business, hedging and trading activities, and those of MLPF&S and our respective affiliates (including trades in shares of the Basket Stocks), and any hedging and trading activities we, MLPF&S or our respective affiliates engage in for our clients’ accounts, may affect the market value and return of the notes and may create conflicts of interest with you. |
§ | None of the issuers of the Basket Stocks (each, an “Underlying Company”) will have any obligations relating to the notes, and neither we nor MLPF&S will perform any due diligence procedures with respect to any Underlying Company in connection with this offering. |
§ | You will have no rights of a holder of the Basket Stocks, and you will not be entitled to receive shares of the Basket Stocks or dividends or other distributions by any Underlying Company. |
§ | While we, MLPF&S or our respective affiliates may from time to time own Basket Stocks, we, MLPF&S and our respective affiliates do not control any Underlying Company and are not responsible for any disclosure made by any other company. |
Income Notes | TS-6 |
Income Notes Linked to a Basket of 20 Common Equity Securities, due August 28, 2020 |
§ | Your return on the notes and the value of the notes may be affected by exchange rate movements and factors affecting the international securities markets. |
§ | The value of a Basket Stock that is an ADR may not track the value of the common shares of the Underlying Company. |
§ | The terms of the notes will not be adjusted for all corporate events that could affect the Basket Stocks. See “Description of the Notes—Anti-Dilution Adjustments” beginning on page PS-19 of product supplement STOCK INCOME-1. |
§ | There may be potential conflicts of interest involving the calculation agent. We have the right to appoint and remove the calculation agent. |
§ | The U.S. federal income tax consequences of the notes are uncertain, and may be adverse to a holder of the notes. See “Material U.S. Federal Income Tax Considerations” below and “Material U.S. Federal Income Tax Consequences” beginning on page PS-29 of product supplement STOCK INCOME-1. |
Income Notes | TS-7 |
Income Notes Linked to a Basket of 20 Common Equity Securities, due August 28, 2020 |
We have derived the following information about the Underlying Companies from publicly available documents. We have not independently verified the accuracy or completeness of the following information.
Because each Basket Stock is registered under the Securities Exchange Act of 1934, the Underlying Companies are required to file periodically certain financial and other information specified by the SEC. Information provided to or filed with the SEC by the Underlying Companies can be located at the Public Reference Section of the SEC, 100 F Street, N.E., Room 1580, Washington, D.C. 20549 or through the SEC’s web site at http://www.sec.gov by reference to the applicable CIK number set forth below.
This term sheet relates only to the notes and does not relate to any securities of the Underlying Companies. None of us, MLPF&S, or any of our respective affiliates has participated or will participate in the preparation of the Underlying Companies’ publicly available documents. None of us, MLPF&S, or any of our respective affiliates has made any due diligence inquiry with respect to the Underlying Companies in connection with the offering of the notes. None of us, MLPF&S, or any of our respective affiliates make any representation that the publicly available documents or any other publicly available information regarding the Underlying Companies are accurate or complete. Furthermore, there can be no assurance that all events occurring prior to the date of this term sheet, including events that would affect the accuracy or completeness of these publicly available documents that would affect the trading price of the Basket Stocks, have been or will be publicly disclosed. Subsequent disclosure of any events or the disclosure of or failure to disclose material future events concerning the Underlying Companies could affect the value of the Basket Stocks and therefore could affect your return on the notes. The selection of the Basket Stocks is not a recommendation to buy or sell the Basket Stocks.
The tables set forth below generally show the quarterly high and low Closing Market Prices of the shares of the Basket Stocks on their primary exchange from the first quarter of 2008 through the pricing date; however, for certain Basket Stocks, the tables below show the quarterly high and low Closing Market Prices of the shares of those Basket Stocks from when a particular Basket Stock commenced trading through the pricing date. We obtained this historical data from Bloomberg L.P. We have not independently verified the accuracy or completeness of the information obtained from Bloomberg L.P. These historical trading prices may have been adjusted to reflect certain corporate actions such as stock splits and reverse stock splits.
AbbVie Inc.
AbbVie Inc. researches and develops pharmaceutical products. The company produces pharmaceutical drugs for therapeutic areas such as immunology, chronic kidney disease, Hepatitis C, women’s health, oncology and neuroscience. The company also offers treatments for diseases, including Multiple Sclerosis, Parkinson’s and Alzheimer’s disease. Its common stock trades on the New York Stock Exchange (the “NYSE”) under the symbol “ABBV.” The company’s CIK number is 1551152.
High ($) | Low ($) | ||
2012 | Fourth Quarter (starting on December 10, 2012) | 35.35 | 33.00 |
2013 | First Quarter | 40.78 | 33.71 |
Second Quarter | 47.17 | 40.57 | |
Third Quarter | 47.95 | 41.61 | |
Fourth Quarter | 54.32 | 44.52 | |
2014 | First Quarter | 53.68 | 46.83 |
Second Quarter | 56.79 | 46.46 | |
Third Quarter (through the pricing date) | 58.22 | 52.05 |
Income Notes | TS-8 |
Income Notes Linked to a Basket of 20 Common Equity Securities, due August 28, 2020 |
BHP Billiton Limited
BHP Billiton Limited is an international resources company. The company's principal business lines are mineral exploration and production, including coal, iron ore, gold, titanium, ferroalloys, nickel and copper concentrate, as well as petroleum exploration, production, and refining. Its ADRs trade on the NYSE under the symbol “BHP.” The company’s CIK number is 811809.
High ($) | Low ($) | ||
2008 | First Quarter | 75.75 | 57.82 |
Second Quarter | 95.00 | 66.91 | |
Third Quarter | 82.86 | 50.50 | |
Fourth Quarter | 51.35 | 24.62 | |
2009 | First Quarter | 48.45 | 33.56 |
Second Quarter | 61.86 | 44.38 | |
Third Quarter | 68.89 | 49.54 | |
Fourth Quarter | 77.90 | 62.63 | |
2010 | First Quarter | 81.80 | 67.90 |
Second Quarter | 82.86 | 58.44 | |
Third Quarter | 76.97 | 62.42 | |
Fourth Quarter | 92.92 | 76.38 | |
2011 | First Quarter | 96.02 | 84.88 |
Second Quarter | 102.68 | 88.38 | |
Third Quarter | 96.80 | 66.44 | |
Fourth Quarter | 83.60 | 64.42 | |
2012 | First Quarter | 82.15 | 70.70 |
Second Quarter | 75.50 | 60.87 | |
Third Quarter | 72.28 | 61.84 | |
Fourth Quarter | 78.44 | 67.78 | |
2013 | First Quarter | 80.46 | 68.43 |
Second Quarter | 71.09 | 57.38 | |
Third Quarter | 70.02 | 56.32 | |
Fourth Quarter | 72.81 | 63.73 | |
2014 | First Quarter | 70.82 | 62.76 |
Second Quarter | 72.40 | 66.38 | |
Third Quarter (through the pricing date) | 73.50 | 68.23 |
Income Notes | TS-9 |
Income Notes Linked to a Basket of 20 Common Equity Securities, due August 28, 2020 |
Comcast Corporation
Comcast Corporation provides media and television broadcasting services. The company offers video streaming, television programming, high-speed internet, cable television, and communication services. Its Class A common stock trades on the NASDAQ under the symbol “CMCSA.” The company’s CIK number is 1166691.
High ($) | Low ($) | ||
2008 | First Quarter | 20.54 | 16.61 |
Second Quarter | 22.72 | 18.61 | |
Third Quarter | 22.28 | 18.01 | |
Fourth Quarter | 19.35 | 13.07 | |
2009 | First Quarter | 17.99 | 11.22 |
Second Quarter | 16.69 | 13.53 | |
Third Quarter | 17.56 | 13.26 | |
Fourth Quarter | 17.64 | 14.06 | |
2010 | First Quarter | 18.82 | 15.21 |
Second Quarter | 20.39 | 16.77 | |
Third Quarter | 19.56 | 17.00 | |
Fourth Quarter | 22.25 | 17.66 | |
2011 | First Quarter | 25.77 | 22.37 |
Second Quarter | 26.68 | 23.44 | |
Third Quarter | 25.97 | 19.78 | |
Fourth Quarter | 24.81 | 20.36 | |
2012 | First Quarter | 30.35 | 24.53 |
Second Quarter | 31.97 | 28.28 | |
Third Quarter | 36.41 | 31.10 | |
Fourth Quarter | 38.12 | 35.13 | |
2013 | First Quarter | 42.01 | 37.90 |
Second Quarter | 43.72 | 38.90 | |
Third Quarter | 45.84 | 40.66 | |
Fourth Quarter | 51.97 | 44.33 | |
2014 | First Quarter | 55.24 | 49.10 |
Second Quarter | 54.10 | 47.96 | |
Third Quarter (through the pricing date) | 55.41 | 52.68 |
Income Notes | TS-10 |
Income Notes Linked to a Basket of 20 Common Equity Securities, due August 28, 2020 |
Eaton Corporation plc
Eaton Corporation plc manufactures engineered products for the industrial, vehicle, construction, commercial, and aerospace markets. The company offers products including hydraulic products and fluid connectors, electrical power distribution and control equipment, truck drivetrain systems, engine components, and a wide variety of controls. Its ordinary shares trade on the NYSE under the symbol “ETN.” The company’s CIK number is 1551182.
High ($) | Low ($) | ||
2008 | First Quarter | 48.09 | 38.78 |
Second Quarter | 48.35 | 39.47 | |
Third Quarter | 42.17 | 26.89 | |
Fourth Quarter | 27.29 | 19.39 | |
2009 | First Quarter | 26.16 | 15.14 |
Second Quarter | 24.59 | 18.75 | |
Third Quarter | 30.04 | 20.41 | |
Fourth Quarter | 33.11 | 27.03 | |
2010 | First Quarter | 38.21 | 30.62 |
Second Quarter | 40.16 | 32.72 | |
Third Quarter | 41.34 | 31.79 | |
Fourth Quarter | 51.09 | 40.65 | |
2011 | First Quarter | 56.22 | 50.11 |
Second Quarter | 55.91 | 45.81 | |
Third Quarter | 52.88 | 34.73 | |
Fourth Quarter | 46.97 | 34.16 | |
2012 | First Quarter | 52.51 | 45.29 |
Second Quarter | 50.09 | 37.09 | |
Third Quarter | 48.52 | 37.04 | |
Fourth Quarter | 54.66 | 44.65 | |
2013 | First Quarter | 63.42 | 55.02 |
Second Quarter | 68.88 | 55.80 | |
Third Quarter | 70.79 | 63.08 | |
Fourth Quarter | 76.75 | 65.65 | |
2014 | First Quarter | 77.67 | 68.65 |
Second Quarter | 79.24 | 70.92 | |
Third Quarter (through the pricing date) | 79.44 | 66.72 |
Income Notes | TS-11 |
Income Notes Linked to a Basket of 20 Common Equity Securities, due August 28, 2020 |
Ford Motor Company
Ford Motor Company designs, manufactures, and services cars and trucks. The company also provides vehicle-related financing, leasing, and insurance through its subsidiary. Its common stock trades on the NYSE under the symbol “F.” The company’s CIK number is 37996.
High ($) | Low ($) | ||
2008 | First Quarter | 6.85 | 5.11 |
Second Quarter | 8.48 | 4.81 | |
Third Quarter | 6.03 | 4.17 | |
Fourth Quarter | 4.55 | 1.26 | |
2009 | First Quarter | 2.94 | 1.58 |
Second Quarter | 6.41 | 2.74 | |
Third Quarter | 8.44 | 5.35 | |
Fourth Quarter | 10.20 | 6.84 | |
2010 | First Quarter | 14.10 | 10.28 |
Second Quarter | 14.46 | 9.88 | |
Third Quarter | 13.16 | 10.16 | |
Fourth Quarter | 17.00 | 12.26 | |
2011 | First Quarter | 18.79 | 14.01 |
Second Quarter | 15.79 | 12.78 | |
Third Quarter | 14.12 | 9.62 | |
Fourth Quarter | 12.51 | 9.37 | |
2012 | First Quarter | 12.96 | 11.13 |
Second Quarter | 12.64 | 9.59 | |
Third Quarter | 10.59 | 8.92 | |
Fourth Quarter | 12.95 | 9.79 | |
2013 | First Quarter | 14.30 | 12.13 |
Second Quarter | 15.90 | 12.44 | |
Third Quarter | 17.66 | 15.74 | |
Fourth Quarter | 17.76 | 15.15 | |
2014 | First Quarter | 16.73 | 14.55 |
Second Quarter | 17.28 | 15.46 | |
Third Quarter (through the pricing date) | 17.84 | 16.81 |
Income Notes | TS-12 |
Income Notes Linked to a Basket of 20 Common Equity Securities, due August 28, 2020 |
Facebook, Inc.
Facebook, Inc. operates a social networking website. The company's website allows people to communicate with their family, friends, and coworkers. Facebook develops technologies that facilitate the sharing of information, photographs, website links, and videos. The company’s users have the ability to share and restrict information based on their own specific criteria. Its Class A common stock trades on the NASDAQ under the symbol “FB.” The company’s CIK number is 1326801.
High ($) | Low ($) | ||
2012 | Second Quarter (starting on May 17, 2012) | 38.37 | 25.87 |
Third Quarter | 32.17 | 17.73 | |
Fourth Quarter | 28.24 | 18.99 | |
2013 | First Quarter | 32.46 | 25.14 |
Second Quarter | 28.97 | 22.90 | |
Third Quarter | 51.24 | 24.37 | |
Fourth Quarter | 57.96 | 44.82 | |
2014 | First Quarter | 72.03 | 53.53 |
Second Quarter | 67.60 | 56.14 | |
Third Quarter (through the pricing date) | 75.97 | 62.76 |
FireEye, Inc.
FireEye, Inc. provides malware protection systems and network threat prevention solutions. The company offers web, email, and file security, as well as malware analysis. The company serves customers throughout the United States. Its common stock trades on the NASDAQ under the symbol “FEYE.” The company’s CIK number is 1370880.
High ($) | Low ($) | ||
2013 | Third Quarter (starting on September 20, 2013) | 41.63 | 20.00 |
Fourth Quarter | 43.69 | 33.60 | |
2014 | First Quarter | 95.63 | 41.13 |
Second Quarter | 64.37 | 26.47 | |
Third Quarter (through the pricing date) | 41.04 | 27.57 |
Income Notes | TS-13 |
Income Notes Linked to a Basket of 20 Common Equity Securities, due August 28, 2020 |
Helmerich & Payne, Inc.
Helmerich & Payne, Inc. provides contract drilling of oil and gas wells in the Gulf of Mexico and South America. The company operates land rigs and platform rigs. Its common stock trades on the NYSE under the symbol “HP.” The company’s CIK number is 46765.
High ($) | Low ($) | ||
2008 | First Quarter | 47.42 | 34.74 |
Second Quarter | 76.99 | 47.46 | |
Third Quarter | 71.69 | 40.41 | |
Fourth Quarter | 42.04 | 18.10 | |
2009 | First Quarter | 27.27 | 20.12 |
Second Quarter | 36.79 | 23.61 | |
Third Quarter | 40.98 | 27.36 | |
Fourth Quarter | 44.90 | 36.51 | |
2010 | First Quarter | 48.58 | 36.40 |
Second Quarter | 43.30 | 33.42 | |
Third Quarter | 41.62 | 36.33 | |
Fourth Quarter | 49.06 | 40.26 | |
2011 | First Quarter | 68.69 | 48.11 |
Second Quarter | 70.34 | 57.67 | |
Third Quarter | 72.60 | 40.60 | |
Fourth Quarter | 60.58 | 37.39 | |
2012 | First Quarter | 65.13 | 52.40 |
Second Quarter | 54.96 | 39.18 | |
Third Quarter | 51.49 | 42.28 | |
Fourth Quarter | 56.98 | 45.22 | |
2013 | First Quarter | 67.94 | 56.58 |
Second Quarter | 65.50 | 56.25 | |
Third Quarter | 70.82 | 62.91 | |
Fourth Quarter | 84.08 | 70.92 | |
2014 | First Quarter | 107.70 | 81.95 |
Second Quarter | 116.72 | 104.40 | |
Third Quarter (through the pricing date) | 118.29 | 98.63 |
Income Notes | TS-14 |
Income Notes Linked to a Basket of 20 Common Equity Securities, due August 28, 2020 |
JPMorgan Chase & Co.
JPMorgan Chase & Co. provides financial services and retail banking. The company provides services such as investment banking, treasury and securities services, asset management, private banking, card member services, commercial banking, and home finance. The company serves business enterprises, institutions, and individuals. Its common stock trades on the NYSE under the symbol “JPM.” The company’s CIK number is 19617.
High ($) | Low ($) | ||
2008 | First Quarter | 48.25 | 36.48 |
Second Quarter | 49.25 | 34.31 | |
Third Quarter | 48.24 | 31.02 | |
Fourth Quarter | 49.85 | 22.72 | |
2009 | First Quarter | 31.35 | 15.90 |
Second Quarter | 38.94 | 27.25 | |
Third Quarter | 46.47 | 32.27 | |
Fourth Quarter | 47.16 | 40.27 | |
2010 | First Quarter | 45.02 | 37.70 |
Second Quarter | 47.81 | 36.61 | |
Third Quarter | 41.64 | 35.63 | |
Fourth Quarter | 42.67 | 36.96 | |
2011 | First Quarter | 48.00 | 43.40 |
Second Quarter | 47.64 | 39.49 | |
Third Quarter | 42.29 | 29.27 | |
Fourth Quarter | 37.02 | 28.38 | |
2012 | First Quarter | 46.27 | 34.91 |
Second Quarter | 46.13 | 31.00 | |
Third Quarter | 41.57 | 33.90 | |
Fourth Quarter | 44.53 | 39.29 | |
2013 | First Quarter | 51.00 | 44.57 |
Second Quarter | 55.62 | 46.64 | |
Third Quarter | 56.67 | 50.32 | |
Fourth Quarter | 58.48 | 50.75 | |
2014 | First Quarter | 61.07 | 54.31 |
Second Quarter | 60.67 | 53.31 | |
Third Quarter (through the pricing date) | 59.74 | 55.56 |
Kraft Foods Group, Inc.
Kraft Foods Group, Inc. is a food company. The company is focused on consumer packaged food and beverages for North American Grocery stores. The company offers a wide range of branded beverages, cheese, grocery products and convenient meals. Its common stock trades on the NASDAQ under the symbol “KRFT.” The company’s CIK number is 1545158.
High ($) | Low ($) | ||
2012 | Third Quarter (starting on September 17, 2012) | 46.45 | 44.65 |
Fourth Quarter | 47.57 | 43.66 | |
2013 | First Quarter | 51.66 | 45.39 |
Second Quarter | 57.54 | 50.09 | |
Third Quarter | 58.29 | 51.57 | |
Fourth Quarter | 55.79 | 51.89 | |
2014 | First Quarter | 56.21 | 51.06 |
Second Quarter | 60.50 | 55.64 | |
Third Quarter (through the pricing date) | 60.66 | 53.59 |
Income Notes | TS-15 |
Income Notes Linked to a Basket of 20 Common Equity Securities, due August 28, 2020 |
McDonald’s Corporation
McDonald’s Corporation franchises and operates fast-food restaurants in the restaurant industry. The company's restaurants serve a variety of value-priced menu products in countries around the world. Its common stock trades on the NYSE under the symbol “MCD.” The company’s CIK number is 63908.
High ($) | Low ($) | ||
2008 | First Quarter | 58.17 | 50.75 |
Second Quarter | 61.17 | 55.40 | |
Third Quarter | 65.95 | 57.19 | |
Fourth Quarter | 63.66 | 51.55 | |
2009 | First Quarter | 63.75 | 50.86 |
Second Quarter | 60.99 | 52.40 | |
Third Quarter | 58.82 | 54.23 | |
Fourth Quarter | 64.53 | 56.61 | |
2010 | First Quarter | 67.35 | 61.45 |
Second Quarter | 71.52 | 65.87 | |
Third Quarter | 76.08 | 66.11 | |
Fourth Quarter | 80.34 | 74.92 | |
2011 | First Quarter | 76.73 | 72.67 |
Second Quarter | 84.57 | 75.99 | |
Third Quarter | 90.79 | 82.11 | |
Fourth Quarter | 100.81 | 85.83 | |
2012 | First Quarter | 101.74 | 95.55 |
Second Quarter | 99.40 | 86.32 | |
Third Quarter | 93.71 | 87.15 | |
Fourth Quarter | 94.09 | 84.05 | |
2013 | First Quarter | 99.69 | 89.90 |
Second Quarter | 103.59 | 96.42 | |
Third Quarter | 101.58 | 94.36 | |
Fourth Quarter | 98.92 | 93.27 | |
2014 | First Quarter | 98.78 | 93.02 |
Second Quarter | 103.53 | 97.01 | |
Third Quarter (through the pricing date) | 101.07 | 93.31 |
Income Notes | TS-16 |
Income Notes Linked to a Basket of 20 Common Equity Securities, due August 28, 2020 |
Och-Ziff Capital Management Group LLC
Och-Ziff Capital Management Group manages hedge funds. The company provides a variety of alternative asset management services for fund investors through locations in the United States, Europe, and Asia. Och-Ziff Capital's investment strategies include private equity, real estate, and equity restructuring. Its Class A shares trades on the NYSE under the symbol “OZM.” The company’s CIK number is 1403256.
This Basket Stock represents the company’s common equity securities. Accordingly, references in this document and in product supplement STOCK INCOME-1 to “a share” or “shares” of common stock, or similar terms, will also refer to units of a limited liability company.
High ($) | Low ($) | ||
2008 | First Quarter | 26.10 | 19.48 |
Second Quarter | 22.24 | 18.25 | |
Third Quarter | 18.80 | 11.69 | |
Fourth Quarter | 11.20 | 3.98 | |
2009 | First Quarter | 6.57 | 4.58 |
Second Quarter | 10.56 | 6.19 | |
Third Quarter | 12.17 | 7.80 | |
Fourth Quarter | 14.04 | 11.28 | |
2010 | First Quarter | 16.00 | 12.57 |
Second Quarter | 18.15 | 12.59 | |
Third Quarter | 15.69 | 12.00 | |
Fourth Quarter | 15.98 | 13.69 | |
2011 | First Quarter | 17.39 | 15.26 |
Second Quarter | 16.42 | 13.13 | |
Third Quarter | 14.26 | 9.03 | |
Fourth Quarter | 11.39 | 7.43 | |
2012 | First Quarter | 10.72 | 8.35 |
Second Quarter | 9.72 | 6.81 | |
Third Quarter | 9.70 | 6.84 | |
Fourth Quarter | 10.30 | 8.74 | |
2013 | First Quarter | 10.72 | 8.83 |
Second Quarter | 11.64 | 9.24 | |
Third Quarter | 11.50 | 10.44 | |
Fourth Quarter | 14.87 | 11.14 | |
2014 | First Quarter | 15.91 | 13.04 |
Second Quarter | 13.88 | 11.65 | |
Third Quarter (through the pricing date) | 14.18 | 11.82 |
Income Notes | TS-17 |
Income Notes Linked to a Basket of 20 Common Equity Securities, due August 28, 2020 |
Philip Morris International Inc.
Philip Morris International Inc., through its subsidiaries, affiliates and their licensees, produces, sells, distributes, and markets a wide range of branded cigarettes and tobacco products in markets outside of the United States of America. The company's portfolio comprises both international and local brands. Its common stock trades on the NYSE under the symbol “PM.” The company’s CIK number is 1413329.
High ($) | Low ($) | ||
2008 | First Quarter | 51.75 | 49.15 |
Second Quarter | 53.63 | 48.00 | |
Third Quarter | 55.95 | 46.80 | |
Fourth Quarter | 50.78 | 36.63 | |
2009 | First Quarter | 44.47 | 32.34 |
Second Quarter | 44.60 | 36.09 | |
Third Quarter | 49.40 | 42.34 | |
Fourth Quarter | 51.55 | 47.36 | |
2010 | First Quarter | 52.89 | 45.51 |
Second Quarter | 52.95 | 43.17 | |
Third Quarter | 56.32 | 46.45 | |
Fourth Quarter | 60.82 | 55.29 | |
2011 | First Quarter | 65.70 | 56.02 |
Second Quarter | 71.75 | 64.92 | |
Third Quarter | 72.35 | 62.38 | |
Fourth Quarter | 79.10 | 61.76 | |
2012 | First Quarter | 88.61 | 73.26 |
Second Quarter | 90.31 | 81.91 | |
Third Quarter | 93.38 | 86.67 | |
Fourth Quarter | 93.74 | 82.39 | |
2013 | First Quarter | 93.42 | 85.83 |
Second Quarter | 96.44 | 86.50 | |
Third Quarter | 90.54 | 82.95 | |
Fourth Quarter | 91.64 | 84.16 | |
2014 | First Quarter | 86.02 | 75.39 |
Second Quarter | 91.34 | 82.21 | |
Third Quarter (through the pricing date) | 86.29 | 81.58 |
Income Notes | TS-18 |
Income Notes Linked to a Basket of 20 Common Equity Securities, due August 28, 2020 |
PPL Corporation
PPL Corporation is an energy and utility holding company. The company, through its subsidiaries, generates electricity from power plants in the northeastern and western United States, and markets wholesale and retail energy primarily in the northeastern and western portions of the United States, and delivers electricity in Pennsylvania and the United Kingdom. Its common stock trades on the NYSE under the symbol “PPL.” The company’s CIK number is 922224.
High ($) | Low ($) | ||
2008 | First Quarter | 55.16 | 45.07 |
Second Quarter | 53.67 | 46.94 | |
Third Quarter | 53.03 | 34.98 | |
Fourth Quarter | 37.84 | 28.69 | |
2009 | First Quarter | 33.21 | 24.46 |
Second Quarter | 34.34 | 27.83 | |
Third Quarter | 33.98 | 28.59 | |
Fourth Quarter | 32.98 | 29.16 | |
2010 | First Quarter | 32.61 | 27.58 |
Second Quarter | 28.64 | 24.24 | |
Third Quarter | 27.85 | 25.20 | |
Fourth Quarter | 27.93 | 25.19 | |
2011 | First Quarter | 26.91 | 24.35 |
Second Quarter | 28.28 | 25.56 | |
Third Quarter | 29.27 | 25.33 | |
Fourth Quarter | 30.24 | 27.45 | |
2012 | First Quarter | 28.85 | 27.49 |
Second Quarter | 28.20 | 26.77 | |
Third Quarter | 29.93 | 27.82 | |
Fourth Quarter | 30.15 | 27.93 | |
2013 | First Quarter | 31.31 | 28.71 |
Second Quarter | 33.38 | 28.45 | |
Third Quarter | 32.01 | 29.35 | |
Fourth Quarter | 31.08 | 29.25 | |
2014 | First Quarter | 33.14 | 29.59 |
Second Quarter | 35.53 | 32.42 | |
Third Quarter (through the pricing date) | 35.16 | 31.94 |
Income Notes | TS-19 |
Income Notes Linked to a Basket of 20 Common Equity Securities, due August 28, 2020 |
Sempra Energy
Sempra Energy is an energy services holding company with operations throughout the United States, Mexico, and other countries in South America. The company, through its subsidiaries, generates electricity, delivers natural gas, operates natural gas pipelines and storage facilities, and operates a wind power generation project. Its common stock trades on the NYSE under the symbol “SRE.” The company’s CIK number is 1032208.
High ($) | Low ($) | ||
2008 | First Quarter | 62.57 | 49.52 |
Second Quarter | 59.35 | 54.30 | |
Third Quarter | 58.58 | 50.47 | |
Fourth Quarter | 50.83 | 36.99 | |
2009 | First Quarter | 46.53 | 36.72 |
Second Quarter | 50.80 | 44.25 | |
Third Quarter | 52.52 | 47.55 | |
Fourth Quarter | 56.88 | 49.63 | |
2010 | First Quarter | 55.90 | 48.13 |
Second Quarter | 51.36 | 44.52 | |
Third Quarter | 53.93 | 46.43 | |
Fourth Quarter | 54.17 | 49.88 | |
2011 | First Quarter | 54.07 | 50.62 |
Second Quarter | 55.50 | 51.91 | |
Third Quarter | 53.42 | 45.59 | |
Fourth Quarter | 55.34 | 49.78 | |
2012 | First Quarter | 59.96 | 54.83 |
Second Quarter | 69.26 | 61.14 | |
Third Quarter | 70.86 | 64.06 | |
Fourth Quarter | 72.74 | 64.64 | |
2013 | First Quarter | 80.18 | 70.84 |
Second Quarter | 84.60 | 78.36 | |
Third Quarter | 88.77 | 79.73 | |
Fourth Quarter | 92.10 | 85.23 | |
2014 | First Quarter | 96.76 | 88.44 |
Second Quarter | 104.72 | 95.57 | |
Third Quarter (through the pricing date) | 104.88 | 97.25 |
Income Notes | TS-20 |
Income Notes Linked to a Basket of 20 Common Equity Securities, due August 28, 2020 |
SunEdison, Inc.
SunEdison, Inc. manufactures semiconductors and solar energy technology. The company produces electronic-grade polysilicon used for electronics, solar cells, and film devices. The company also develops solar power projects and markets its products to corporations, utilities, governments and chip manufacturers. Its common stock trades on the NYSE under the symbol “SUNE.” The company’s CIK number is 945436.
High ($) | Low ($) | ||
2008 | First Quarter | 87.88 | 63.08 |
Second Quarter | 77.35 | 61.38 | |
Third Quarter | 59.64 | 26.52 | |
Fourth Quarter | 28.83 | 10.45 | |
2009 | First Quarter | 19.03 | 12.31 |
Second Quarter | 20.94 | 14.03 | |
Third Quarter | 20.86 | 15.22 | |
Fourth Quarter | 16.44 | 11.98 | |
2010 | First Quarter | 15.51 | 11.60 |
Second Quarter | 16.82 | 9.88 | |
Third Quarter | 12.03 | 9.41 | |
Fourth Quarter | 13.59 | 10.93 | |
2011 | First Quarter | 14.84 | 11.00 |
Second Quarter | 12.75 | 8.04 | |
Third Quarter | 8.58 | 4.98 | |
Fourth Quarter | 6.73 | 3.67 | |
2012 | First Quarter | 5.78 | 3.61 |
Second Quarter | 3.74 | 1.54 | |
Third Quarter | 3.27 | 1.70 | |
Fourth Quarter | 3.38 | 2.18 | |
2013 | First Quarter | 5.66 | 3.44 |
Second Quarter | 8.72 | 4.08 | |
Third Quarter | 10.22 | 6.46 | |
Fourth Quarter | 13.49 | 8.35 | |
2014 | First Quarter | 21.48 | 13.37 |
Second Quarter | 22.87 | 16.74 | |
Third Quarter (through the pricing date) | 24.05 | 19.32 |
Income Notes | TS-21 |
Income Notes Linked to a Basket of 20 Common Equity Securities, due August 28, 2020 |
Texas Instruments Incorporated
Texas Instruments Incorporated operates as a semiconductor design and manufacturing company. The company develops analog integrated circuits and embedded processors. Texas Instruments has manufacturing or sales operations worldwide. Its common stock trades on the NASDAQ under the symbol “TXN.” The company’s CIK number is 97476.
The company’s common stock traded on the NYSE until January 1, 2012, at which time it was listed on the NASDAQ.
High ($) | Low ($) | ||
2008 | First Quarter | 32.35 | 28.11 |
Second Quarter | 32.70 | 28.16 | |
Third Quarter | 29.13 | 21.50 | |
Fourth Quarter | 21.64 | 14.01 | |
2009 | First Quarter | 17.38 | 13.77 |
Second Quarter | 21.66 | 16.25 | |
Third Quarter | 25.14 | 20.42 | |
Fourth Quarter | 26.85 | 22.49 | |
2010 | First Quarter | 26.34 | 22.50 |
Second Quarter | 27.16 | 23.28 | |
Third Quarter | 27.14 | 23.03 | |
Fourth Quarter | 33.75 | 27.21 | |
2011 | First Quarter | 36.56 | 32.67 |
Second Quarter | 35.90 | 31.24 | |
Third Quarter | 33.52 | 24.82 | |
Fourth Quarter | 31.82 | 26.46 | |
2012 | First Quarter | 33.99 | 29.57 |
Second Quarter | 33.26 | 26.87 | |
Third Quarter | 30.27 | 26.44 | |
Fourth Quarter | 31.34 | 27.17 | |
2013 | First Quarter | 35.62 | 31.58 |
Second Quarter | 37.09 | 33.92 | |
Third Quarter | 40.87 | 35.05 | |
Fourth Quarter | 43.91 | 39.24 | |
2014 | First Quarter | 47.15 | 40.89 |
Second Quarter | 48.47 | 44.89 | |
Third Quarter (through the pricing date) | 49.29 | 45.67 |
Income Notes | TS-22 |
Income Notes Linked to a Basket of 20 Common Equity Securities, due August 28, 2020 |
Under Armour, Inc.
Under Armour, Inc. develops, markets, and distributes branded performance products for men, women, and youth. The company designs and sells a broad offering of apparel and accessories made of synthetic microfibers. Its Class A common stock trades on the NYSE under the symbol “UA.” The company’s CIK number is 1336917.
High ($) | Low ($) | ||
2008 | First Quarter | 11.44 | 7.00 |
Second Quarter | 9.65 | 6.41 | |
Third Quarter | 10.75 | 6.24 | |
Fourth Quarter | 7.83 | 4.39 | |
2009 | First Quarter | 6.54 | 3.08 |
Second Quarter | 6.42 | 4.03 | |
Third Quarter | 7.67 | 5.11 | |
Fourth Quarter | 8.27 | 6.38 | |
2010 | First Quarter | 7.70 | 5.99 |
Second Quarter | 9.38 | 7.55 | |
Third Quarter | 11.38 | 8.13 | |
Fourth Quarter | 15.00 | 11.11 | |
2011 | First Quarter | 17.45 | 13.25 |
Second Quarter | 19.63 | 15.63 | |
Third Quarter | 20.60 | 13.20 | |
Fourth Quarter | 21.50 | 16.14 | |
2012 | First Quarter | 24.74 | 18.05 |
Second Quarter | 26.61 | 22.25 | |
Third Quarter | 30.02 | 22.74 | |
Fourth Quarter | 29.64 | 23.71 | |
2013 | First Quarter | 25.60 | 22.93 |
Second Quarter | 32.15 | 25.28 | |
Third Quarter | 40.59 | 29.91 | |
Fourth Quarter | 43.65 | 38.18 | |
2014 | First Quarter | 62.22 | 41.00 |
Second Quarter | 59.65 | 46.24 | |
Third Quarter (through the pricing date) | 70.82 | 57.00 |
Income Notes | TS-23 |
Income Notes Linked to a Basket of 20 Common Equity Securities, due August 28, 2020 |
Verizon Communications Inc.
Verizon Communications Inc. is an integrated telecommunications company that provides wire line voice and data services, wireless services, Internet services, and published directory information. The company also provides network services for the federal government including business phone lines, data services, telecommunications equipment and payphones. Its common stock trades on the NYSE under the symbol “VZ.” The company’s CIK number is 732712.
High ($) | Low ($) | ||
2008 | First Quarter | 40.42 | 31.46 |
Second Quarter | 36.99 | 32.03 | |
Third Quarter | 33.49 | 28.61 | |
Fourth Quarter | 31.98 | 23.43 | |
2009 | First Quarter | 32.37 | 24.46 |
Second Quarter | 30.86 | 26.92 | |
Third Quarter | 30.19 | 26.74 | |
Fourth Quarter | 31.52 | 26.76 | |
2010 | First Quarter | 31.15 | 26.51 |
Second Quarter | 29.40 | 25.16 | |
Third Quarter | 32.86 | 26.28 | |
Fourth Quarter | 35.78 | 31.90 | |
2011 | First Quarter | 38.54 | 34.30 |
Second Quarter | 38.61 | 35.12 | |
Third Quarter | 37.82 | 33.12 | |
Fourth Quarter | 40.12 | 35.35 | |
2012 | First Quarter | 39.78 | 37.21 |
Second Quarter | 44.44 | 36.80 | |
Third Quarter | 45.89 | 42.25 | |
Fourth Quarter | 47.26 | 41.40 | |
2013 | First Quarter | 49.48 | 41.51 |
Second Quarter | 53.91 | 48.30 | |
Third Quarter | 51.49 | 45.91 | |
Fourth Quarter | 51.14 | 46.05 | |
2014 | First Quarter | 49.30 | 45.98 |
Second Quarter | 50.05 | 45.94 | |
Third Quarter (through the pricing date) | 51.97 | 48.64 |
Income Notes | TS-24 |
Income Notes Linked to a Basket of 20 Common Equity Securities, due August 28, 2020 |
Exxon Mobil Corporation
Exxon Mobil Corporation operates petroleum and petrochemicals businesses. The company's operations include exploration and production of oil and gas, electric power generation, and coal and minerals operations. It also manufactures and markets fuels, lubricants and chemicals. Its common stock trades on the NYSE under the symbol “XOM.” The company’s CIK number is 34088.
High ($) | Low ($) | ||
2008 | First Quarter | 93.83 | 81.44 |
Second Quarter | 94.56 | 84.91 | |
Third Quarter | 88.35 | 73.25 | |
Fourth Quarter | 83.14 | 62.35 | |
2009 | First Quarter | 81.64 | 62.22 |
Second Quarter | 74.05 | 64.75 | |
Third Quarter | 72.75 | 65.12 | |
Fourth Quarter | 76.47 | 66.58 | |
2010 | First Quarter | 70.30 | 64.35 |
Second Quarter | 69.29 | 57.07 | |
Third Quarter | 62.72 | 56.57 | |
Fourth Quarter | 73.42 | 62.19 | |
First Quarter | 87.07 | 74.55 | |
Second Quarter | 88.00 | 76.78 | |
Third Quarter | 85.22 | 68.03 | |
Fourth Quarter | 85.28 | 71.15 | |
2012 | First Quarter | 87.49 | 83.53 |
Second Quarter | 87.07 | 77.60 | |
Third Quarter | 92.30 | 83.11 | |
Fourth Quarter | 93.48 | 85.10 | |
2013 | First Quarter | 91.76 | 87.70 |
Second Quarter | 92.80 | 86.08 | |
Third Quarter | 95.20 | 86.04 | |
Fourth Quarter | 101.51 | 85.16 | |
First Quarter | 101.07 | 89.52 | |
Second Quarter | 104.38 | 96.72 | |
Third Quarter (through the pricing date) | 104.37 | 98.20 |
Income Notes | TS-25 |
Income Notes Linked to a Basket of 20 Common Equity Securities, due August 28, 2020 |
Supplement to the Plan of Distribution
Under our distribution agreement with MLPF&S, MLPF&S will purchase the notes from us as principal at the public offering price indicated on the cover of this term sheet, less the indicated underwriting discount.
We will deliver the notes against payment therefor in New York, New York on a date that is greater than three business days following the pricing date. Under Rule 15c6-1 of the Securities Exchange Act of 1934, trades in the secondary market generally are required to settle in three business days, unless the parties to any such trade expressly agree otherwise. Accordingly, purchasers who wish to trade the notes more than three business days prior to the original issue date will be required to specify alternative settlement arrangements to prevent a failed settlement.
The notes will not be listed on any securities exchange. In the original offering of the notes, the notes will be sold in minimum investment amounts of 100 units. If you place an order to purchase the notes, you are consenting to MLPF&S acting as a principal in effecting the transaction for your account.
MLPF&S has advised us as follows: They or their affiliates may repurchase and resell the notes, with repurchases and resales being made at prices related to then-prevailing market prices or at negotiated prices determined by reference to their pricing models and at their discretion, and these prices will include MLPF&S’s trading commissions and mark-ups. MLPF&S may act as principal or agent in these market-making transactions; however, it is not obligated to engage in any such transactions. MLPF&S has informed us that at MLPF&S’s discretion and for your benefit, assuming no changes in market conditions from the pricing date, MLPF&S may offer to buy the notes in the secondary market at a price that may exceed the initial estimated value of the notes for a short initial period after the issuance of the notes. Any price offered by MLPF&S for the notes will be based on then-prevailing market conditions and other considerations, including the performance of the Basket Stocks and the remaining term of the notes. However, none of us, MLPF&S, or any of our respective affiliates is obligated to purchase your notes at any price or at any time, and we cannot assure you that we, MLPF&S, or any of our respective affiliates will purchase your notes at a price that equals or exceeds the initial estimated value of the notes.
MLPF&S has informed us that, as of the date of this term sheet, it expects that if you hold your notes in a MLPF&S account, the value of the notes shown on your account statement will be based on MLPF&S’s estimate of the value of the notes if MLPF&S or another of its affiliates were to make a market in the notes, which it is not obligated to do; and that estimate will be based upon the price that MLPF&S may pay for the notes in light of then-prevailing market conditions and other considerations, as mentioned above, and will include transaction costs. Any such price may be higher than or lower than the initial estimated value of the notes.
The distribution of the Note Prospectus in connection with these offers or sales will be solely for the purpose of providing investors with the description of the terms of the notes that was made available to investors in connection with their initial offering. Secondary market investors should not, and will not be authorized to, rely on the Note Prospectus for information regarding Credit Suisse or for any purpose other than that described in the immediately preceding sentence.
The notes are our debt securities, the return on which is linked to the performance of the Basket Stocks. As is the case for all of our debt securities, including our market-linked notes, the economic terms of the notes reflect our actual or perceived creditworthiness at the time of pricing. In addition, because market-linked notes result in increased operational, funding and liability management costs to us, the internal funding rate we use in pricing market-linked notes is typically lower than a rate reflecting the yield on our conventional debt securities of similar maturity in the secondary market. Because we use our internal funding rate to determine the value of the theoretical bond component, if on the pricing date our internal funding rate is lower than our secondary market credit rates, the initial estimated value of the notes will be higher than if the initial estimated value was based our secondary market credit rates.
Payments on the notes, including the Coupon Payments and the payment at maturity, will be calculated based on the $10 principal amount per unit and will depend on the performance of the Basket Stocks. In order to meet these payment obligations, at the time we issue the notes, we may choose to enter into certain hedging arrangements (which may include call options, put options or other derivatives) with MLPF&S or one of its affiliates. The terms of these hedging arrangements are determined by seeking bids from market participants, including MLPF&S and its affiliates, and take into account a number of factors, including our creditworthiness, interest rate movements, the volatility of the Basket Stocks, the tenor of the notes and the tenor of the hedging arrangements. The economic terms of the notes and their initial estimated value depend in part on the terms of these hedging arrangements.
MLPF&S has advised us that the hedging arrangements will include a hedging related charge of approximately $0.075 per unit, reflecting an estimated profit to be credited to MLPF&S from these transactions. Since hedging entails risk and may be influenced by unpredictable market forces, additional profits and losses from these hedging arrangements may be realized by MLPF&S or any third party hedge providers.
For further information, see “Risk Factors—General Risks Relating to the Notes” beginning on page PS-5 and “Supplemental Use of Proceeds and Hedging” on page PS-15 of product supplement STOCK INCOME-1.
Income Notes | TS-26 |
Income Notes Linked to a Basket of 20 Common Equity Securities, due August 28, 2020 |
Material U.S. Federal Income Tax Considerations
The following discussion is a brief summary of material U.S. federal income tax consequences relating to an investment in the notes. The following summary is not complete and is both qualified and supplemented by the discussion under the section entitled “Material U.S. Federal Income Tax Considerations” beginning on page PS-29 of product supplement STOCK INCOME-1, which you should carefully review prior to investing in the notes.
There are no statutory provisions, regulations, published rulings, or judicial decisions addressing the characterization for U.S. federal income tax purposes of the notes or securities with terms that are substantially the same as those of the notes. Thus, the characterization of the notes is not certain. In the absence of an administrative or judicial ruling to the contrary and pursuant to the terms of the notes, you agree with us to treat the notes, for U.S. federal income tax purposes, as variable rate debt instruments. The balance of this discussion assumes that the notes will be treated as variable rate debt instruments. You should be aware that such characterization of the notes is not certain, nor is it binding on the U.S. Internal Revenue Service (the “IRS”) or the courts. Thus, it is possible that the IRS would seek to characterize your notes in a manner that results in tax consequences to you that are different from those described below or in the accompanying product supplement. We are not responsible for any adverse consequences that you may experience as a result of any alternative characterization of the notes for U.S. federal income tax or other tax purposes. You should consult your tax advisor as to the tax consequences of such characterization and any possible alternative characterizations of the notes for U.S. federal income tax purposes.
If the notes are treated as variable rate debt instruments, a U.S. Holder should include Coupon Payments on the notes as ordinary interest income at the time such amounts are received or accrued (in accordance with the U.S. Holder’s regular method of tax accounting for U.S. federal income tax purposes). Upon the sale or other taxable disposition of a note (and subject to the discussion under “Constructive Ownership Transaction Rules” in the product supplement), a U.S. Holder generally will recognize gain or loss equal to the difference between the amount realized on the sale or other taxable disposition (less any accrued qualified stated interest, which will be taxable as ordinary interest income) and the U.S. Holder’s tax basis in the note (generally its cost). Such gain or loss will be long-term capital gain or loss if the U.S. Holder has held the note for more than one year at the time of disposition. For notes held one year or less at the time of disposition, such gain or loss will be short-term capital gain or loss.
You should consult your tax advisor concerning the U.S. federal income tax and other tax consequences of your investment in the notes in your particular circumstances, including the application of state, local or other tax laws and the possible effects of changes in federal or other tax laws.
Where You Can Find More Information
We have filed a registration statement (including a product supplement, a prospectus supplement, and a prospectus) with the SEC for the offering to which this term sheet relates. Before you invest, you should read the Note Prospectus, including this term sheet, and the other documents that we have filed with the SEC, for more complete information about us and this offering. You may get these documents without cost by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, we, any agent, or any dealer participating in this offering will arrange to send you these documents if you so request by calling MLPF&S toll-free at 1-866-500-5408.
Income Notes | TS-27 |