Benzinga - Credit Suisse Group AG (NYSE:CS) said it is taking decisive action to pre-emptively strengthen its liquidity by intending to exercise its option to borrow from the Swiss National Bank (SNB) up to $54 billion (50 billion Swiss Francs).
The borrowing would be done under a covered loan facility as well as a short-term liquidity facility, which is fully collateralized by high-quality assets.
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Measures: Credit Suisse also highlighted offers by Credit Suisse International to repurchase certain OpCo senior debt securities for cash of up to approximately $3.22 billion.
Credit Suisse also announced it is making a cash tender offer in relation to ten U.S. dollar-denominated senior debt securities for an aggregate consideration of up to $2.5 billion.
The lender is also announcing a separate cash tender offer in relation to four Euro-denominated senior debt securities for an aggregate consideration of up to €500 million.
Price Action: Credit Suisse shares listed on NYSE closed 13.94% lower on Wednesday after its biggest shareholder ruled out continued financing support but gained 5.56% in extended trading at the time of writing. The Saudi National Bank reportedly said regulatory guidelines do not allow it to invest in over 10% of an entity.
Credit Suisse earlier requested the Swiss National Bank to show support and had asked for a similar response from Finma, the Swiss regulator.
"These measures demonstrate decisive action to strengthen Credit Suisse as we continue our strategic transformation to deliver value to our clients and other stakeholders," said CEO Ulrich Koerner. "My team and I are resolved to move forward rapidly to deliver a simpler and more focused bank built around client needs," he said.
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