Credit Suisse Outlines Details On $4B Capital Raise Plan - Credit Suisse Group (NYSE:CS)

  • Credit Suisse Group AG CS has enlarged the banking syndicate underwriting the rights issue and announced the reference price for the proposed CHF4 billion capital raise.
  • It said new investors have committed to buying 462 million new shares at a purchase price of CHF3.82, equivalent to 94% of the volume weighted average price of Credit Suisse shares on Oct. 27 and 28, raising CHF1.76 billion.
  • Some 307.6 million new shares are expected to be bought by Saudi National Bank, giving it a 9.9% stake in Credit Suisse.
  • Related: Struggling Credit Suisse Reveals Significant Business Overhaul, Planned Investment From Saudi.
  • Existing investors can buy 889 million shares at CHF2.52 per share, with subscription rights corresponding to the size of their present stake.
  • It is expected that seven pre-emptive subscription rights will entitle holders to purchase two new shares at a 32% discount on the reference price, Credit Suisse said.
  • If shareholders reject the plan, Credit Suisse said it would issue 1.8 billion new shares at an offer price of CHF2.27 per share, which would still enable it to raise 4 billion francs.
  • Price Action: CS shares are up 3.56% at $4.07 during the premarket session on the last check Monday.

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