Zurich (awp) – By confirming capital increases totaling 4.0 billion Swiss francs, Credit Suisse presents the first conditions of the transaction. While each issue right will allow the acquisition of two new shares, the reference issue price amounts to 4.07 Swiss francs per share, the second Swiss bank said on Monday.
This amount corresponds to the volume-weighted average price of Credit Suisse shares traded on the Swiss Stock Exchange on 27 and 28 October. For qualified investors, who have committed to purchase nearly 462 million new shares with a par value of 0.04 francs each, the purchase price is 3.82 Swiss francs per share, or 94% of the reference price. The anticipated gross proceeds from the share offering are expected to be $ 1.76 billion.
As indicated last Thursday, the Saudi National Bank (BNS) has pledged to purchase more than 307.5 million new bonds of the more than 462 million to be issued. Following the capital increase, the SNB is expected to hold 9.9% of Credit Suisse’s share capital. The SNB, together with the other qualified investors, has agreed not to sell the new shares before the settlement date of the next option offer and to exercise all the rights that will be attributed to the shares to be acquired.
As part of the second part of the capital increase, intended for its current shareholders, Credit Suisse intends to issue 889.3 million new shares with a par value of 0.04 francs each. Two-ply bank holders will be granted a preferential subscription right for each security they hold on 25 November (after close of trading). Seven preferential subscription rights are expected to give the holder the right – subject to certain legal restrictions – to purchase two new shares at the expected price of 2.52 Swiss francs per share.
The go-ahead to the shareholders is necessary
This will result in gross revenue of approximately 2.24 billion Swiss francs. Ultimately, the two investments should raise 4.0 billion Swiss francs, as indicated last Thursday. The issue of the new securities is in any case subject to the approval by the extraordinary shareholders’ meeting of the capital increases for this purpose, which will be held on 23 November.
Should the owners of the Zurich plant refuse the share placement, Credit Suisse plans to issue 1.76 billion new shares with a par value of 0.04 francs each as part of a rights issue. In this case, three preferential subscription rights will entitle the holder – subject to certain legal limitations – to purchase two new securities at the price of 2.27 Swiss francs each, which corresponds to the previously published approximate discount of 32% compared to the reference price. Gross proceeds from the transaction are also expected to be around 4.0 billion Swiss francs.
The final terms of the rights issue are expected to be announced on November 24th.
vj / al