Reverse Splits

[sludgehound]

Credit Suisse R/S 1-10 VIIZ & TVIX 6.8.2018

https://finance.yahoo.com/news/credit-suisse-ag-announces-reverse-123000050.html?.tsrc=rss

NEW YORK, May 31, 2018 /PRNewswire/ -- Credit Suisse AG announced today that it will implement a 1-for-10 reverse split of its VelocityShares™ VIX Medium Term ETNs ("VIIZ") and a 1-for-10 reverse split of its VelocityShares™ Daily 2x VIX Short Term ETNs ("TVIX"), each expected to be effective as of June 8, 2018.

Credit Suisse logo. (PRNewsFoto/Credit Suisse)

The reverse splits will be effective at the open of trading on June 8, 2018. VIIZ and TVIX will each begin trading on the Nasdaq Stock Market on a reverse split-adjusted basis on June 8, 2018. Holders of VIIZ and TVIX who purchased such ETNs prior to June 8, 2018 will receive one reverse split-adjusted ETN for every ten pre-reverse split ETNs, respectively.

In addition, such purchasers that hold a number of ETNs not evenly divisible by ten will receive a cash payment for any fractional ETNs remaining (the "partials"). The cash amount due on any partials will be determined on June 14, 2018 based on the respective closing indicative values of VIIZ and TVIX on such date and will be paid by Credit Suisse AG on or about June 19, 2018.

The closing indicative values of VIIZ and TVIX on June 7, 2018 will be multiplied by ten to determine their respective reverse split-adjusted closing indicative values. Following the reverse splits, VIIZ and TVIX will have new CUSIPs but will retain their same ticker symbols.

The reverse splits will affect the trading denominations of VIIZ and TVIX but they will not have any effect on the stated principal amount of any ETN, except that the stated principal amount of each will be reduced by the corresponding aggregate amount of any cash payments for the "partials."

Illustration of a Reverse Split

The following table shows the effect of a 1-for-10 reverse split on 100,000 ETNs:


Number of

ETNs

Hypothetical Closing

Indicative Value

Aggregate Closing

Indicative Value

Pre-Reverse Split

100,000

$5.00

$500,000

1-for-10 Post-Reverse Split

10,000

$50.00

$500,000

The above table illustrates the effect of the reverse split on the number of ETNs and the hypothetical closing indicative value of the ETNs. The closing indicative value is not the same as the trading price of the ETNs.

None of the other exchange traded notes issued by Credit Suisse AG are affected by this announcement.