UBS announces successful completion of public tender offer
UBS has repurchased certain outstanding tier 2 and senior bonds for approximately CHF 1.9 billion.
Zurich/Basel, 18 December 2013 – UBS announces the successful completion of the cash tender offer, announced on 2 December 2013, to repurchase certain Swiss franc, euro, pound sterling or Italian lira securities. The aggregate principal amount of repurchased securities is EUR 1.6 billion, equivalent to CHF 1.9 billion. This is in line with the announced maximum offer amount of up to EUR 1.75 billion, equivalent to approximately CHF 2.15 billion. Securities with an aggregate principal amount equivalent to approximately CHF 2.2 billion were tendered.
This transaction is consistent with our proactive approach to reducing our balance sheet and future interest expense while maintaining our strong liquidity, funding and capital position.
As per our 2 December 2013 announcement, the transaction will reduce our BIS Basel III phase-in total capital ratio by approximately 0.4%. UBS incurred a small loss of around CHF 75 million on this transaction, which we expect to recover within approximately one year through the reduction in future interest expense. The repurchase of the tier 2 bonds does not affect our industry-leading Common Equity Tier 1 ratio, and the small loss from the transaction has an insignificant effect on it.
UBS Investment Bank acted as Lead Dealer Manager.
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