UBS Group AG is selling its first bond at the holding company level since the takeover of Credit Suisse in March.
(Bloomberg) — UBS Group AG is selling its first bond at the holding company level since the takeover of Credit Suisse in March.
The 4.25-year, 6-year and 11-year notes combined make the deal a total of $4.5 billion, and are all callable a year before maturity, according to a person familiar with the matter, who asked not to be identified because they’re not authorized to speak about it. The longest portion of the deal will yield, 200 basis points over Treasuries, the person said, after initial talks of around 220 basis points. The offering is expected to price later Monday.
The bank offered a new issue premium of 15, 20 and around 30 basis points on the bonds at the initial price talk stage, according to Bloomberg analysis.
The bond sale is the first from the holding company since the government-orchestrated takeover of Credit Suisse back in March in which $17 billion of Credit Suisse additional tier 1 bonds were controversially wiped out. UBS sold a $3 billion, three-part offering earlier this month through its London branch.
A spokesperson for UBS declined to comment.
Meanwhile, UBS is also sounding out investors over a potential issuance of AT1s, the Financial Times reported on Monday. Bloomberg News reported last month that the bank was exploring a sale of the risky instruments, its first since the takeover and wipeout. Chief Executive Officer Sergio Ermotti said last month issuance may happen when “appropriate.”
–With assistance from Paul Cohen, Josyana Joshua and Christopher DeReza.
(Updates with pricing information starting in second paragraph)
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