On September 4, 2019, Credit Suisse Group AG (Credit Suisse) launched, and on September 11, 2019 successfully completed, the issuance of USD 2 bn 2.593% Fixed Rate|Floating Rate Senior Callable Notes due 2025 (the Notes) under its U.S. Senior Debt Program. The Notes are bail-inable bonds that are eligible to count towards Credit Suisse's Swiss gone concern requirement.
The Notes are the first Swiss law-governed bonds with a floating rate of interest that is determined by reference to the Secured Overnight Financing Rate (SOFR), the proposed alternative reference rate to USD LIBOR. Specifically, during the last year prior to maturity, the interest rate on the Notes will reset quarterly and be based on compounded daily SOFR.
The offering of the Notes was done in reliance on Rule 144A and Regulation S under the U.S. Securities Act. The Notes have been admitted to trading, and application has been made for a listing of the Notes, on the SIX Swiss Exchange.
Homburger advised Credit Suisse with respect to all aspects of Swiss law. The Homburger team was led by partner René Bösch (Capital Markets) and included partners Benjamin Leisinger (Capital Markets) and Dieter Grünblatt (Tax), as well as counsel Lee Saladino and associate Andrea Ziswiler (both Capital Markets).