UBS increases debt securities tender offer to $8.6 billion

ZURICH - UBS Group AG and UBS AG (NYSE:UBS) (SWX:UBSN) announced Wednesday they have increased the maximum purchase consideration for their debt securities tender offers from $4 billion to $8.6 billion, with approximately $8.54 billion in notes validly tendered by the November 5 expiration date.

The banking group accepted $7.67 billion in aggregate principal amount of notes for purchase across six series of debt securities. An additional $29.35 million in notes were tendered through guaranteed delivery procedures, pending completion of required documentation by November 7.

The tender offers targeted seven series of notes, including securities originally issued by Credit Suisse before its acquisition by UBS. Notes with acceptance priority levels 1 through 6 were fully accepted, while no notes from the lowest priority level 7 were accepted.

Among the accepted securities were UBS AG's 7.500% Senior Notes due 2028, with $1.54 billion tendered, and UBS Group AG's 6.537% Fixed Rate/Floating Rate Senior Callable Notes due 2033, with $2.24 billion tendered.

The bank will pay holders the applicable total consideration for each $1,000 or €1,000 principal amount of accepted notes, plus accrued interest. Settlement dates are set for November 7 for standard tenders and November 10 for guaranteed delivery procedures.

The tender offers were part of UBS's ongoing liability management following its acquisition of Credit Suisse. Several of the targeted securities were originally issued by Credit Suisse entities before being assumed by UBS through merger.

UBS Investment Bank acted as dealer manager for the offers, according to the press release statement.

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