The rights offer that completes a 4 billion-franc $4.3 billion two-pronged capital increase is designed to fund a comprehensive restructuring of the troubled lender and will consist of buying 98.2% of the stock on sale by the investors of Bloomberg -- Credit Suisse Group AG.
Credit Suisse said the latest transaction is projected to raise 2.24 billion francs, with the rest of the stock expected to be sold in the market at or above the offer price of 2.52 francs a share. The Zurich-based firm raised 1.76 billion francs through a private placement last month with investors including the Saudi National Bank.
Credit Suisse needs the funds to shore up its finances as it plans to exit large parts of its investment bank and cut 9,000 jobs over the next few years. The bank has warned it will record a fifth straight quarter of losses, as it reels from years of scandals and missteps that have eroded investor confidence and sent clients fleeing.
A successful rights offer marks the end of a wild ride for the stock over the past weeks, when at one point a 13 day losing streak took the shares down to near the price of what was supposed to be a heavily discounted offer. Chairman Axel Lehmann said that the bank had stopped massive outflows, which provided some relief.
The rights issue was fully underwritten by about 20 banks, led by Deutsche Bank AG, Morgan Stanley, RBC Capital Markets and Societe Generale SA.
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