Home » Markets » Credit Suisse to buy back $3B in debt, sell Hotel Savoy
Credit Suisse to buy back $3B in debt, sell Hotel Savoy
Credit Suisse issues fuel jitters of 2008 meltdown
Former FDIC Chair Sheila Bair discusses Credit Suisse’s issues as the U.S. faces economic challenges and how the Fed will keep financial systems ‘stable.’
Credit Suisse shares soared Friday after the company disclosed plans to buy back $3 billion in debt securities as it looks to quell Wall Street's concerns over its financial health.
According to a statement on Friday, the Swiss bank will make a cash tender offer in relation to eight euro or pound sterling-dominated senior debt securities for up to 1 billion euros ($985.8 million). A separate cash tender offer will be made in relation to 12 U.S. dollar-denominated senior debt securities for up to $2 billion.
"The transactions are consistent with our proactive approach to managing our overall liability composition and optimizing interest expense and allow us to take advantage of market conditions to repurchase debt at attractive prices," the company said.
The offers will expire on Nov. 3 and Nov. 10, 2022, respectively, subject to the terms and conditions set out in the offer documents.
CREDIT SUISSE GROUP AG
HOW A SOCIAL MEDIA FRENZY AROUND CREDIT SUISSE RATTLED ITS STOCK
In addition, a Credit Suisse spokesperson confirmed to FOX Business that the bank is exploring a sale of the famed Hotel Savoy in Zurich, Switzerland.
"Credit Suisse reviews its property portfolio on a regular basis as part of its global real-estate strategy," the spokesperson said. "As part of this process, the bank has decided to start a sales process for the Hotel Savoy. We will carefully assess all offers and potential investors and communicate any decision in due course."
MarketsComments Off on Credit Suisse to buy back $3B in debt, sell Hotel Savoy