Credit Suisse gives early results of tender offers for 12 series

By Marisa Wong

Los Angeles, Nov. 4 – Credit Suisse International announced the early participation results of its Oct. 7 invitations to holders of outstanding securities from 12 series issued by Credit Suisse AG, New York Branch to tender those securities for purchase for cash for aggregate consideration of up to $2 billion, according to a Friday press release.

As of 5 p.m. ET on Nov. 3, the early tender deadline, holders had tendered and Credit Suisse will accept for purchase the following securities, with the series listed in order of acceptance priority level:

• $81,771,000 of the $2 billion outstanding 1% notes due May 2023 (Cusip: 22550L2D2) with pricing to be based on the 4.25% U.S. Treasury due Sept. 30, 2024 and a fixed spread of 305 basis points;

• $8,875,000 of the $600 million outstanding floating-rate notes due August 2023 (Cusip: 22550UAD3) at a fixed price of $971.25 per $1,000 principal amount;

• $165,831,000 of the $1.4 billion outstanding 0.52% notes due August 2023 (Cusip: 22550L2F7) with pricing to be based on the 4.25% U.S. Treasury due Sept. 30, 2024 and a fixed spread of 310 bps;

• $118,298,000 of the $1.75 billion outstanding 1.25% notes due August 2026 (Cusip: 22550L2G5) with pricing to be based on the 4.125% U.S. Treasury due Sept. 30, 2027 and a fixed spread of 355 bps;

• $57.55 million of the $1.25 billion outstanding 5% notes due July 2027 (Cusip: 22550L2K6) with pricing to be based on the 4.125% U.S. Treasury due Sept. 30, 2027 and a fixed spread of 375 bps;

• $108,018,000 of the $2.1 billion outstanding 3.7% notes due February 2025 (Cusip: 22550L2H3) with pricing to be based on the 3.5% U.S. Treasury due Sept. 15, 2025 and a fixed spread of 360 bps;

• $65.83 million of the $400 million outstanding floating-rate notes due February 2025 (Cusip: 22550UAF8) at a fixed price of $950 per $1,000 principal amount;

• $54,309,000 of the $1 billion outstanding floating-rate notes due February 2024 (Cusip: 22550UAB7) at a fixed price of $953.75 per $1,000 principal amount;

• $128,255,000 of the $1.25 billion outstanding 4.75% notes due August 2024 (Cusip: 22550L2J9) with pricing to be based on the 4.25% U.S. Treasury due Sept. 30, 2024 and a fixed spread of 370 bps;

• $76,013,000 of the $1 billion outstanding 0.495% notes due February 2024 (Cusip: 22550L2E0) with pricing to be based on the 4.25% U.S. Treasury due Sept. 30, 2024 and a fixed spread of 350 bps;

• $107,318,000 of the $3 billion outstanding 3.625% notes due September 2024 (Cusip: 22546QAP2) with pricing to be based on the 4.25% U.S. Treasury due Sept. 30, 2024 and a fixed spread of 370 bps; and

• $233,724,000 of the $1.5 billion outstanding 2.95% notes due April 2025 (Cusip: 22550L2C4) with pricing to be based on the 3.5% U.S. Treasury due Sept. 15, 2025 and a fixed spread of 350 bps.

The total consideration includes an early tender payment of $30 per $1,000 principal amount of securities tendered by the early tender deadline.

Holders tendering after the early deadline will only be eligible to receive the tender consideration, which is the total consideration less the early tender payment.

The offeror will also pay accrued interest for securities accepted for purchase.

Tenders may no longer be withdrawn.

Tendered securities may be subject to proration, as previously announced.

Pricing was to be calculated at 9:30 a.m. ET on Nov. 4.

Settlement for early tendered securities is expected to be on Nov. 7.

The offer expires at 11:59 p.m. ET on Nov. 10. Results are expected to be announced on Nov. 14.

Final settlement is slated for Nov. 15.

Credit Suisse Securities (USA) LLC (800 820-1653, 212 538-2147, +44 20 7883 8763; attn.: liability management group; americas.lm@credit-suisse.com) is acting as dealer manager for the tender offer.

D.F. King & Co., Inc. (212 269-5550 for banks and brokers and 800 714-3311 for all others; attn.: Michael Horthman; cs@dfking.com) is information agent and tender agent.

Concurrently, Credit Suisse is making a cash tender offer for eight euro- or sterling-denominated senior debt securities for an aggregate consideration of up to €1 billion.

Both offers are subject to various conditions.

The company said the offers are consistent with its proactive approach to managing overall liability composition and optimizing interest expense and allow it to take advantage of market conditions to repurchase debt at attractive prices.

The financial services company is based in Zurich.

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