UBS to buy back outstanding bonds in public tender offers
UBS offers to buy back certain outstanding bonds for up to approximately CHF 5 billion for cash, in line with the accelerated implementation of the strategy announced in October 2012
Zurich/Basel, 5 February 2013 – UBS AG announced today that it is making a cash tender offer in relation to certain euro and Italian lira denominated senior unsecured securities for a maximum aggregate principal amount of EUR 2.25 billion, and a cash tender offer in relation to certain US dollar denominated senior unsecured securities for a maximum aggregate principal amount of USD 2.5 billion. The offers correspond in total to approximately CHF 5 billion, based on yesterday's exchange rates, and are subject to increase and other conditions as set out in the tender offer memoranda.
Following the announcement in October 2012 of the accelerated implementation of our strategy, we have reduced balance sheet and funding needs. We have, therefore, generated capacity within our liquidity and funding position to be able to execute these tender offers.
Our actions to prudently manage the composition of our liabilities will lower interest expense in the future. These actions could lead to a tightening of our credit spreads, and as a result, we could see significant own credit charges in the first quarter.
The tender offer period relating to euro and Italian lira denominated securities will end on 19 February 2013. The tender offer period for the US dollar denominated securities will end on 5 March 2013, with an early participation date set on 19 February 2013. The tender offer periods can be extended, re-opened, amended or terminated as provided in the tender offer memoranda.
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