UBS Buys Back $7.9B in Credit Suisse Debt, Biggest Shrinkage Since Takeover
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On September 11, UBS Group announced it is repurchasing $7.9 billion of legacy Credit Suisse debt, marking its largest move to reduce inherited debt burdens since acquiring the Zurich-based rival in a government-brokered deal finalized in 2023. The Swiss bank completed purchases under its debt tender offer on Friday, representing the largest such buyback to date. Calculations indicate UBS's remaining legacy debt now stands at approximately $29 billion, down from about $90 billion at the time of acquisition. The latest tender offer accelerates repayment of this debt, which has been declining in recent years as bonds mature. When UBS first announced the offer last week, it stated the move was part of its 'proactive management' of capital and total loss-absorbing capacity, as well as aimed at optimizing interest expenses. The bank raised the maximum purchase amount for this tranche of bonds twice, first from $2 billion to $4 billion earlier this week, and subsequently to $5.9 billion.
Source report
September 11 – UBS Group is repurchasing $7.9 billion of legacy Credit Suisse debt, representing its most significant move to reduce inherited debt burdens since acquiring the Zurich-based rival.
According to compiled data, the Swiss bank completed purchases under its debt tender offer on Friday, marking the largest such buyback to date. Following the transaction, UBS's remaining legacy debt now stands at approximately $29 billion, down from roughly $90 billion when the government-brokered acquisition was finalized in 2023.
The latest tender offer accelerates repayment of this debt, which has been declining in recent years due to bond maturities.
When UBS first announced the offer last week, it stated that the move was part of its "proactive management" of capital and total loss-absorbing capacity, as well as aimed at optimizing interest expenses. The bank ultimately raised the maximum purchase amount for this tranche of bonds twice:
- First increasing it from $2 billion to $4 billion earlier this week
- Subsequently raising it further to $5.9 billion
Source
thsNeutral / independent