Corporate Press Release
Credit Suisse Group AG’s MACCS issuance (Tranche B) receives CHF 1,833 million of investor subscription (96.6% take-up)
Balance of CHF 64 million purchased by strategic investors per definitive agreements of July 18, 2012
Brady Dougan, CEO, said: “We are very pleased by this strong outcome. The high take-up is a significant vote of confidence from both, our new and existing investors.”
Credit Suisse Group (Guernsey) V Limited issued CHF 3.8 billion of Mandatory and Contingent Convertible Securities (MACCS) mandatorily convertible into 233.5 million shares. The MACCS issuance is part of the set of targeted capital measures announced on July 18, 2012 that are expected to strengthen Credit Suisse’s capital by CHF 15.3 billion in preparation for the Basel III regulatory framework.
To ensure the placement of the MACCS, the issuance was fully underwritten by strategic and institutional investors. MACCS in the amount of CHF 1.9 billion mandatorily convertible into 117.0 million shares (Tranche A) were directly purchased by the strategic and institutional investors. In order to allow existing shareholders to participate in the issuance, MACCS with an aggregate principal amount of CHF 1.9 billion, mandatorily convertible into 116.5 million shares (Tranche B), were offered to existing shareholders of Credit Suisse Group AG by way of an offering of preferential subscription rights (“Rights”). The Rights were exercisable from July 20, 2012 until July 27, 2012 at 12.00 noon (CET).
Of the MACCS offered in Tranche B, CHF 1,833 million were subscribed by shareholders and investors exercising Rights (96.6% take-up). MACCS in the amount of CHF 64 million, for which Rights were not exercised during the subscription period, were sold to strategic and institutional investors per the definitive agreements of July 18, 2012, thereby ensuring the full placement of the CHF 3.8 billion of MACCS.
MACCS will be admitted to provisional trading on the SIX Stock Exchange on July 30, 2012 and will settle on July 31, 2012.
Credit Suisse AG is acting as sole bookrunner and placement agent for the MACCS issue.