UBS came out with an offer to buyback €2.75bn ($3bn) of its bonds that were issued prior to its acquisition of Credit Suisse in an effort to allay fears over the risks of the deal. It made the offer for holders to tender the notes for cash at their respective re-offer prices citing “exceptional corporate actions”. The notes in question are:

  • €1.5bn 4.625% bonds due March 2028 at 99.932 (currently trading at 100.215)
  • €1.25bn 4.750% bonds due March 2032 at 99.518 (currently trading at 99.895)

The final offer expiration date is on 4 April 2023. Separately, as per FT, UBS is also set to enter talks with Michael Klein to terminate the latter’s deal with Credit Suisse to take control of much of Credit Suisse’s investment bank. Michael Klein is planning to merge his advisory company into CS’s investment banking operations to create Credit Suisse First Boston as a standalone unit. As per sources, UBS is said to have sent a legal team to try voiding the contract between Credit Suisse and Michael Klein in the “cheapest way possible”.

UBS’s dollar bonds were trading higher – its 6.875% Perp was up 1 point to 89.5, yielding 12.23%. 

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