Shortly after its stock and bonds plummeted on Wednesday, Credit Suisse announced that it will be exercising its option to borrow up to CHF 50bn ($54bn) from the Swiss National Bank to boost its liquidity. Credit Suisse also announced a tender offer of over $3bn to buyback some of its senior dollar and euro denominated bonds. Credit Suisse said in its press release, “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 current trading levels to repurchase debt at attractive prices.” The Swiss lender is offering to buyback 10 dollar bonds at 90 to 98 cents on the dollar, as per Bloomberg. With regards to the euro bonds, it is offering to buyback 4 bonds maturing in 2023-2024 at 96 to 99.25 cents on the euro.
For the full list of dollar and euro bonds included in the buyback with the offer price, click here.
Some of the bonds moved higher on Thursday; however, most still trade below the tender offer prices. For instance, the 4.75% August 2024s are currently trading at 89.5, up ~4.87 points on Thursday but still below the tender offer price of 95. Meanwhile, most of its other bonds not included in the buyback, particularly their subordinated bonds (Term of the Day, explained below) saw another round of selling on Thursday, led by its CHF 3.875% Perp that shed 30 points to currently trade at 52.6. It’s CDS continued to climb higher, currently at 1,050bp. However, its stock did see a rebound, up over 19% on Thursday, a move that traders cite as short covering.