Credit Suisse AG announced today that effective August 30, 2013, it will implement 1-for-10 reverse splits of its VelocityShares™ Daily 2x VIX Short Term ETN (“TVIX”), Daily 2x VIX Medium Term ETN (“TVIZ”) and VIX Short Term ETN (“VIIX”) and its VelocityShares™ 3x Long Silver ETN (“USLV”).
The reverse splits will affect the trading denominations of these ETNs but it will not have any effect on the principal amount of the underlying notes, except in the cases of “partial ETNs.”
The closing indicative value of each series of these ETNs on August 29, 2013 will be multiplied by ten to determine their respective reverse split-adjusted closing indicative values. The reverse splits will be effective at the open of trading on August 30, 2013 and these ETNs will begin trading on the NYSE Arca on a reverse split-adjusted basis on such date. Following the reverse splits, each series of these ETNs will have a new CUSIP but will retain the same ticker symbol.
On September 4, 2013, holders of record will receive one reverse split-adjusted ETN for every ten units of the relevant series of ETNs. In addition, such holders of record that hold a number of units of ETNs that is not evenly divisible by ten will receive a cash payment for any number of units remaining of such series of ETNs (the “partials”). The cash amount due on any partials will be determined on September 5, 2013, based on the respective closing indicative value of each series of these ETNs on such date and will be paid by Credit Suisse AG on September 6, 2013.