- Credit Suisse (SIX:) Group AG (NYSE: CS) has enlarged the banking syndicate underwriting the rights issue and announced the reference price for the proposed CHF4 billion capital raise.
- It said new investors have committed to buying 462 million new shares at a purchase price of CHF3.82, equivalent to 94% of the volume weighted average price of Credit Suisse shares on Oct. 27 and 28, raising CHF1.76 billion.
- Some 307.6 million new shares are expected to be bought by Saudi National Bank, giving it a 9.9% stake in Credit Suisse.
- Related: Struggling Credit Suisse Reveals Significant Business Overhaul, Planned Investment From Saudi.
- Existing investors can buy 889 million shares at CHF2.52 per share, with subscription rights corresponding to the size of their present stake.
- It is expected that seven pre-emptive subscription rights will entitle holders to purchase two new shares at a 32% discount on the reference price, Credit Suisse said.
- If shareholders reject the plan, Credit Suisse said it would issue 1.8 billion new shares at an offer price of CHF2.27 per share, which would still enable it to raise 4 billion francs.
- Price Action: CS shares are up 3.56% at $4.07 during the premarket session on the last check Monday.
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