Credit Suisse extends tender offers for 12 series, announces pricing

By William Gullotti

Buffalo, N.Y., Nov. 4 – Credit Suisse International announced the total consideration and extended the expiration deadline for its Oct. 7 invitations to holders of outstanding securities from 12 series issued by Credit Suisse AG, New York Branch, according to a press release on Friday.

With considerations per $1,000 principal amount, Credit Suisse priced the following securities validly tendered and accepted for purchase, with each series listed in order of acceptance priority level:

• $81,771,000 of the $2 billion outstanding 1% notes due May 2023 (Cusip: 22550L2D2) were priced using the 4.25% U.S. Treasury due Sept. 30, 2024 and a fixed spread of 305 basis points for a total consideration of $967.58;

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

• $165,831,000 of the $1.4 billion outstanding 0.52% notes due August 2023 (Cusip: 22550L2F7) were priced using the 4.25% U.S. Treasury due Sept. 30, 2024 and a fixed spread of 310 bps for a total consideration of $947.15;

• $118,298,000 of the $1.75 billion outstanding 1.25% notes due August 2026 (Cusip: 22550L2G5) were priced using the 4.125% U.S. Treasury due Sept. 30, 2027 and a fixed spread of 355 bps for a total consideration of $787.58;

• $57.55 million of the $1.25 billion outstanding 5% notes due July 2027 (Cusip: 22550L2K6) were priced using the 4.125% U.S. Treasury due Sept. 30, 2027 and a fixed spread of 375 bps for a total consideration of $881.17;

• $108,018,000 of the $2.1 billion outstanding 3.7% notes due February 2025 (Cusip: 22550L2H3) were priced using the 3.5% U.S. Treasury due Sept. 15, 2025 and a fixed spread of 360 bps for a total consideration of $906.90;

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

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

• $128,255,000 of the $1.25 billion outstanding 4.75% notes due August 2024 (Cusip: 22550L2J9) were priced using the 4.25% U.S. Treasury due Sept. 30, 2024 and a fixed spread of 370 bps for a total consideration of $940.55;

• $76,013,000 of the $1 billion outstanding 0.495% notes due February 2024 (Cusip: 22550L2E0) were priced using the 4.25% U.S. Treasury due Sept. 30, 2024 and a fixed spread of 350 bps for a total consideration of $910.48;

• $107,318,000 of the $3 billion outstanding 3.625% notes due September 2024 (Cusip: 22546QAP2) were priced using the 4.25% U.S. Treasury due Sept. 30, 2024 and a fixed spread of 370 bps for a total consideration of $919.15; and

• $233,724,000 of the $1.5 billion outstanding 2.95% notes due April 2025 (Cusip: 22550L2C4) were priced using the 3.5% U.S. Treasury due Sept. 15, 2025 and a fixed spread of 350 bps for a total consideration of $887.87.

The total consideration includes an early tender payment of $30 per $1,000 principal amount of securities tendered by the early tender deadline, which expired at 5 p.m. ET on Nov. 3.

Early settlement remains scheduled for Nov. 7.

As previously reported, 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.

According to the press release, $903,019,211.06 remains available for additional tenders. Subsequently, Credit Suisse extended the expiration date of the offer to 11:59 p.m. ET on Nov. 18 from 11:59 p.m. ET on Nov. 10.

Likewise, final settlement was pushed out to Nov. 22 from Nov. 15.

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

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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