Embattled lender Credit Suisse (CS) is buying back up to $3 billion U.S. of debt securities as it
strives to shore up its finances and stock.
The Swiss bank is also selling its famous Savoy Hotel in Zurich’s financial district as it
scrambles for liquidity.
In a statement, Credit Suisse said it is taking advantage of “market conditions to repurchase
debt at attractive prices.”
Credit Suisse is also undertaking a massive strategic review under a new chief executive
following several scandals and risk management failures at the bank.
Credit Suisse has said that it will provide an update on its progress alongside its quarterly
earnings October 27.
The costliest scandal was Credit Suisse’s $5 billion U.S. exposure to hedge fund Archegos,
which collapsed in March 2021.
Following the Archegos failure, Credit Suisse overhauled its management team, suspended
share buybacks, and cut its dividend as it looks to shore up its finances.
On Friday, the bank announced a cash tender offer relating to eight euro or sterling-
denominated senior debt securities, worth up to $980 million U.S., along with 12 U.S. dollar-
denominated securities worth up to $2 billion U.S.
The offers on the debt securities expire on November 3 and November 10, respectively.
Credit Suisse’s shares briefly hit an all-time low earlier this week before recovering. Year-to-
date, the bank’s stock has declined 57% to trade at $4.29 U.S. per share.
