Qualified investors committed to buying 462 million new Credit Suisse shares for 3.82 Swiss francs, generating about 1.76 billion francs.
The reference price for the 462 million shares is 4.07 Swiss francs, the volume-weighted average price on October 27 and 28, of which the 3.82 qualified investor share price represents 94 percent. The sale will generate gross proceeds for Credit Suisse of 1.76 billion francs ($1.77 billion), Credit Suisse said in a statement Monday.
Saudi Stake
Related to the qualified investor share placement, 307,591,623 shares are to be issued to and purchased by the Saudi National Bank (SNB), which is expected to hold 9.9 percent of Credit Suisse's share capital.
The SNB and other qualified investors are committed to holding the shares until at least after the settlement date of the subsequent rights offering and to exercise all the rights that will be allocated to the shares they committed to acquire, the statement went on to say.
Existing Shareholders
For existing shareholders, the issue price for the 889.4 million shares to be placed in the rights offering will be 2.52 francs. They are eligible to purchase two new shares for every seven held. The subscription rights are to be issued on November 25, 2022, after the close of trading.
Large Consortium
The capital increase proceeds are expected to help the institution finance another multi-year restructuring program. On Friday, chief financial officer Dixit Joshi held a due diligence conference call for the capital increase, according to «Bloomberg» (paywall).
Credit Suisse invited twenty institutions to underwrite the share issue, along with lead banks Morgan Stanley, Royal Bank of Canada, Deutsche Bank, and Societe Generale. All banks declined to comment on the details of the invitation and their involvement in the capital increase.
