Credit Suisse holders pass resolution for covered bonds due 2015; other meetings adjourned to Dec. 30

By Jennifer Chiou

New York, Dec. 16 – Credit Suisse AG, Guernsey Branch announced the receipt of the needed consents to amend its €1.25 billion of covered bonds due December 2015.

Because the company did not reach a quorum in meetings for other series of its covered bonds, those meetings have been adjourned to Dec. 30.

The affected series include:

• $1 billion of covered bonds due May 2016;

• €1.25 billion of covered bonds due January 2017;

• €1.25 billion of covered bonds due October 2018;

• €1.75 billion of covered bonds due March 2019;

• €1.25 billion of covered bonds due January 2021; and

• €600 million of covered bonds due July 2039.

As reported, the company is soliciting consents to amend the bond series to modify the terms of each series to change them into “soft bullet” covered bonds from being “hard bullet” covered bonds.

The voting deadline for the remaining bonds has been changed to Dec. 23.

Credit Suisse previously said that it continually reviews regulatory and market developments, as an active participant in the covered bond market, and the proposed amendments align the terms and conditions of the older outstanding series with those of the most recently issued series 9 to ensure ongoing cost efficiency of this funding program.

The solicitation agent is Credit Suisse Securities (Europe) Ltd. (800 820-1653 or 212 538-2147; 44 20 7883 8763; liability.management@credit-suisse.com). The European tabulation agent is Lucid Issuer Services Ltd. (44 20 7704 0880; cs@lucid-is.com), and the U.S. tabulation agent is D.F. King & Co., Inc. (800 949-2583 or 212 269-5550; cs@dfking.com).

The financial services company is based in Zurich. It launched the solicitation on Nov. 24.

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