Credit Suisse in $2 Billion “Bail In” Debt Offering

December 10, 2015

Cleary Gottlieb represented Credit Suisse in the offering of $2 billion 3.125% senior notes due 2020 by Credit Suisse Group Funding. The securities are expected to qualify as “Total Loss Absorbing Capital” under the rules being developed by the Financial Stability Board in consultation with the Basel Committee on Banking Supervision for application to global systemically important banks such as Credit Suisse. The securities, which include an acknowledgement and consent by the holders to the Swiss regulator’s ability to exercise its resolution powers (including the possible write-down, cancellation or conversion into equity of the entire principal amount and/or accrued interest), have been issued by a finance subsidiary and are guaranteed by CSG, the group holding company. This is the fourth issuance of “bail in” securities by a Swiss bank, following on Credit Suisse’s successful $4 billion debut offering in March 2015 and its subsequent $2 billion issuances in May and September 2015, in which Cleary Gottlieb also acted as issuer’s counsel.

The notes were sold in a Rule 144A / Regulation S offering with registration rights. The offering launched and priced on December 7, 2015 and closed on December 10, 2015.

As one of the world’s leading financial services providers, CSG is committed to delivering its combined financial experience and expertise to corporate, institutional and government clients, ultra-high-net-worth and high-net-worth individuals worldwide, as well as affluent and retail clients in Switzerland. Founded in 1856, today CSG has a global reach with operations in over 50 countries.