The reference price for the share is given as CHF 4.07. According to the announcement on Monday, this price corresponds to the volume-weighted average price of Credit Suisse shares traded on the SIX Swiss Exchange on October 27 and 28, 2022. The bank also states a purchase price of CHF 3.82 for qualified investors who can acquire shares while excluding the subscription rights of existing shareholders.
According to the information provided, these qualified investors have committed themselves to purchasing around 462 million shares, with the stated price corresponding to 94 percent of the reference price. The expected gross proceeds from this share placement will be approximately 1.76 billion Swiss francs.
As already announced, a large proportion of these shares will go to the Saudi National Bank (SNB), namely around 308 million shares. As already known, the SNB will then hold around 9.9 percent of the capital.
The SNB and the other qualified investors would also have undertaken not to sell the new shares until after the settlement date of the subsequent rights offering and to exercise all rights assigned to the corresponding shares.
Seven subscription rights for every two shares
Furthermore, CS wants to reissue 889 million new shares for the capital increase to the existing shareholders. According to the information provided, on November 25, 2022 (after the close of trading) they will be allocated a subscription right for each share they hold. Seven subscription rights should then entitle the holder to purchase two new shares at an (anticipated) offer price of CHF 2.52 per share.
This corresponds to the previously published approximate discount to the theoretical price ex subscription right (TERP) of 32 percent on the reference price and leads to gross proceeds from the rights issue of around 2.24 billion francs, CS continues. As announced, the gross proceeds from both capital increases will thus amount to 4.0 billion.
Provided the blessing of the GM
The issuance of the new shares is subject to the approval of an extraordinary general meeting, which will take place on November 23rd. The final terms of the rights issue will then be announced on November 24, 2022.
In the event that the part of the capital increase to the qualified investors is rejected by the AGM, CS intends to issue around 1.77 billion new shares as part of the rights issue. In this case, three subscription rights would entitle the holder to purchase two new shares at an offer price of CHF 2.27 per share. This would also bring CS gross proceeds of around 4.0 billion Swiss francs.
uh/ra
Zurich (awp)