Credit Suisse begins any-and-all, capped tenders for numerous notes

By Susanna Moon

Chicago, March 3 – Credit Suisse Securities (Europe) Ltd. began a tender offer for any and all of $6.05 billion of six series of euro-denominated and dollar-denominated notes.

In separate offers, the company is tendering for up to $3.75 billion of a number of note series less the purchase amount in the any-and-all offers.

In the euro-denominated any-and-all offers, the purchase price will be as follows for each €1,000 principal amount of notes issued by Credit Suisse AG, London Branch:

• €1.5 billion floating-rate notes due November 2017 at a purchase price of €1,005;

• €1.5 billion floating-rate notes due December 2017 at a purchase price of €1,005.25; and

• €1.6 billion floating-rate notes due February 2018 at a purchase price of €1,005.75.

For the dollar-denominated notes, pricing will be set at 10 a.m. ET on March 13 using the reference yield based on the bid-side price of a reference security as follows:

• Credit Suisse AG, New York Branch’s $1,188,000,000 6% subordinated notes due February 2018 will price using 1.125% U.S. Treasury notes due Feb. 28, 2019 plus 60 basis points;

• Credit Suisse AG, London Branch’s $10 million 5.6% notes due July 2040 will price based on 2.875% U.S. Treasury notes due Nov. 15, 2046 plus 145 bps; and

• Credit Suisse AG, London Branch’s $20 million 1.64% notes due June 2042 will price based on 2.875% U.S. Treasury notes due Nov. 15, 2046 plus 155 bps.

Holders also will receive accrued interest to but excluding the settlement date.

The any-and-all offers are “consistent with the offeror’s proactive approach to managing overall liability composition and optimizing interest expense, while maintaining its strong liquidity, funding and capital position,” according to a 6-K filing with the Securities and Exchange Commission.

The tender offers will end at noon ET on March 13, with settlement following on March 15.

Tendered notes may be withdrawn before the end of the offer.

The guaranteed delivery deadline is 5 p.m. on March 15, with settlement on March 16.

Credit Suisse Securities (Europe) Ltd. (800 820-1653, 212 538-2147, +44 20 7883 8763 / +44 20 7888 9350 or liability.management@credit-suisse.com) is the dealer manager. D.F. King & Co., Inc. (212 269 5550, 800 431 9643, cs@dfking.com or fax 212 709 3328) is the U.S. information and tender agent and Lucid Issuer Services Ltd. (+44 20 7704 0880 or cs@lucid-is.com) is the European information and tender agent.

Capped tender offers

Credit Suisse Securities (Europe) Ltd. is tendering for a number of notes issued by Credit Suisse AG, London Branch, consistent with its “proactive approach to managing overall liability composition and optimizing interest expense, while maintaining its strong liquidity, funding and capital position,” according to a separate company announcement.

Pricing for each €1,000 principal amount will be at 6 a.m. ET on March 14 as follows:

• €2 billion outstanding principal amount 5.125% notes due September 2017 with a purchase price of €1,031.25;

• €1 billion outstanding principal amount 0.5% notes due March 2018 with pricing to be set using the 0.25% German Bundesobligationen due April 13, 2018 plus 45 basis points;

• €1 billion outstanding principal amount floating-rate notes due June 2018 with a purchase price of €1,008.25;

• €50 million outstanding principal amount 0.59% notes due July 2018 with pricing based on the 0% German Bundesobligationen due Dec. 14, 2018 plus 15 bps;

• €1.5 billion outstanding principal amount 0.625% notes due November 2018 with pricing based on the 1% German Bundesobligationen due Oct. 12, 2018 plus 50 bps;

• €1.25 billion outstanding principal amount 0.375% notes due April 2019 with pricing based on the 1% German Bundesobligationen due Feb. 22, 2019 plus 65 bps;

• €2.55 billion outstanding principal amount 4.75% notes due August 2019 with pricing based on the 3.5% German Bundesobligationen due July 4, 2019 plus 80 bps;

• €1 billion outstanding principal amount floating-rate notes due October 2019 with purchase price €1,013;

• €2.25 billion outstanding principal amount 1.375% notes due November 2019 with pricing based on the 3.5% German Bundesobligationen due July 4, 2019 plus 75 bps; and

• €50 million outstanding principal amount 2.92% notes due May 2034 with pricing based on the 4% German Bundesobligationen due Jan. 4, 2037 plus 65 bps.

The capped tender offers will remain open until noon ET on March 13, with settlement expected to occur on March 15.

Credit Suisse Securities (Europe) Ltd. (+44 20 7883 8763 / +44 20 7888 9350 or liability.management@credit-suisse.com) is the dealer manager. Lucid Issuer Services Ltd. (+44 20 7704 0880, fax +44 20 3004 1590 or cs@lucid-is.com) is the tender agent.

Credit Suisse AG is a financial services company based in Zurich.

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