TSSP acquires $1.27 billion distressed portfolio from Credit Suisse

By Wendy Van Sickle

Columbus, Ohio, May 4 – TSSP said it acquired credit assets including a part of Credit Suisse’s distressed credit portfolio for about $1.27 billion, utilizing no portfolio leverage.

The Credit Suisse distressed portfolio bought by TSSP is comprised of over 270 instruments across asset types and geographies relating to about 170 companies, according to a Wednesday press release.

Additional terms of the transaction were not disclosed.

Credit Suisse Global Markets division previously announced it has accelerated its strategic implementation of a business model with lower risk appetite and reduced volatility.

This transaction reduces Credit Suisse’s overall distressed credit exposure by $1.24 billion. In addition to the $99 million of write-downs disclosed on March 23 in respect of the overall distressed portfolio, this transaction has resulted in a further charge of about $100 million, the bulk of which will be reflected in Credit Suisse’s first-quarter results due to be announced on May 10, according to the release.

“The Credit Suisse distressed credit desk has been a long-time trusted partner to TSSP globally and we are pleased they selected TSSP to help it quickly execute on its strategy,” Clint Kollar, a TSSP partner, said in the release.

“This transaction leverages our global team’s ability to provide speed, certainty and value to financial institutions and other sellers in complex situations. The portfolio we are acquiring has deep, long-term potential and fits well with our patient and flexible capital.”

Bob Franz, Credit Suisse’s head of U.S. credit trading, and Ken Hoffman, the bank’s head of distressed research and trading, will lead the formation of a new asset management firm to assist in servicing these assets and other similar assets in the future.

TSSP is the global credit and special situations platform of TPG.

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