Ad hoc releases
UBS to buy back certain outstanding bonds in public tender offer
UBS offers to buy back certain outstanding bonds with an aggregate principal amount equivalent to approximately CHF 16 billion.
Zurich/Basel, 4 December 2015 – UBS announces today that UBS AG is making cash tender offers to purchase 17 issues of its senior and subordinated debt and covered bonds having an aggregate principal amount equivalent to approximately CHF 16 billion. The offers are subject to customary conditions and restrictions and are subject to increase or decrease as set out in the tender offer memorandum. The tender offer period will end on 15 December 2015, unless extended, re-opened or earlier terminated as provided in the tender offer memorandum. The specific series of securities covered by each offer will be specified in the formal announcement of each offer to be published today.
This transaction is consistent with our proactive approach to optimizing the Group's interest expense, while maintaining our strong liquidity, funding and capital position. We expect to record an expense in the fourth quarter of 2015 related to this transaction, which will be recognized as negative other income in Group Asset and Liability Management and will be treated as an adjusting item in determining the Group's "adjusted operating profit/ (loss) before tax". The repurchase of the bonds is expected to have an immaterial effect on our CET1 ratio. Subordinated bonds subject to the offers are currently eligible as Tier 2 capital with a remaining capital content under the BIS Basel III phase-in rules, but will not be eligible for Tier 2 capital treatment on a fully-applied basis beginning in 2019.
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