UBS to take over Credit Suisse senior bail-in notes

UBS Group AG is about to take over the Credit Suisse Group AG, which issued senior bail-in notes worth 2.75 billion euro $2.96 billion in aggregate, just before its decision to take over senior bail-in notes.

Swiss bank UBS is offering holders of 1.5 billion notes due March 2028 and EUR 1.25 billion notes due March 2032 to tender their notes for cash. The bonds were issued on Friday and the deal with Credit Suisse was disclosed on Sunday.

The bank's outlook was lowered last week by S&P Global Ratings and Moody s Investors Service after Credit Suisse CS, CSGN, took over the bank, citing risks arising from the takeover. Fitch Ratings placed UBS on its so-called rating watch negative on Tuesday due to the uncertain implications of the deal for the bank's credit profile. UBS is offering to purchase the notes at their own re-offer price due to the exceptional corporate actions announced on Sunday. The decision was a result of UBS'commitment to its credit investors and follows an assessment of recent developments, according to the bank. The offers start Wednesday with an early expiration deadline on March 28 and a final expiration deadline on April 4, according to UBS.