By Cristal Cody
Chicago, Aug. 9 – Credit Suisse Group AG sold $6.25 billion of fixed-to-floating rate notes on Monday, according to information from a market source.
The bank priced a $1.5 billion four-year tranche that starts with a 6.37% interest rate. The rate resets to SOFR plus 334 basis points after the initial fixed-rate period.
The tranche comes with three years of call protection.
Price talk had the notes coming in the 345 bps area over Treasuries. They priced 20 bps lower, at a 325 bps spread.
The middle tranche priced as $1.75 billion of six-year notes that start with a 6.442% coupon. The rate resets to SOFR plus 370 bps.
There are five years of call protection.
Similarly, the notes priced with a spread 20 bps lower than talk: at 355 bps over Treasures versus talk in the 375 bps area.
The bulk of the allocations went to a $3 billion 11-year tranche. The notes start with a 6.537% rate that resets to SOFR plus 392 bps.
There are 10 years of call protection.
Again, the notes priced 20 bps low to talk. For the tranche, the spread priced as 380 bps over Treasuries against talk in the 400 bps area.
Credit Suisse was listed as the bookrunner.
The financial services company is based in Zurich.
| Issuer: | Credit Suisse Group AG
|
| Amount: | $6.25 billion
|
| Issue: | Fixed-to-floating rate notes
|
| Bookrunner: | Credit Suisse
|
| Trade date: | Aug. 8
|
|
|
| Four-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | July 15, 2026
|
| Coupon: | 6.37% initial rate; resets to SOFR plus 334 bps
|
| Spread: | Treasuries plus 325 bps
|
| Call features: | Three years
|
| Price talk: | Treasuries plus 345 bps area
|
|
|
| Six-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | Aug. 11, 2028
|
| Coupon: | 6.442% initial rate; resets to SOFR plus 370 bps
|
| Spread: | Treasuries plus 355 bps
|
| Call features: | Five years
|
| Price talk: | Treasuries plus 375 bps area
|
|
|
| 11-year notes
|
| Amount: | $3 billion
|
| Maturity: | Aug. 12, 2033
|
| Coupon: | 6.537% initial rate; resets to SOFR plus 392 bps
|
| Spread: | Treasuries plus 380 bps
|
| Call features: | 10 years
|
| Price talk: | Treasuries plus 400 bps area
|
|
|
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