Credit Suisse issues 462m shares to qualified investors in $4bn capital hike

Credit Suisse has issued 462m new shares to qualified investors at 3.82 Swiss francs ($4.05) per share, the bank said on Thursday, outlining details of its 4 billion franc capital hike.

The capital increase, which was approved by investors on Wednesday, is intended to fund the embattled bank’s turnaround plan as it recovers from a series of scandals and losses.

Recently Apollo is said to be offering for another stake in Credit Suisse’s securitization business.

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The US investment firm has now agreed to acquire Sector Financial, a Credit Suisse subsidiary specializing in financing and lending to mid-sized companies, as «Bloomberg» reports citing people familiar with the matter.

Sector Financial, headquartered in Chevy Chase, Maryland, outside of Washington DC, focuses on borrowers in industries such as healthcare and technology, offering loans ranging from $10m to over $100m. Its business portfolio also includes commercial mortgages and leveraged loans.

Apollo operates a mid-market lending platform under the name MidCap Financial. Credit Suisse announced on Tuesday that it would sell a large part of its securitization business to Apollo. The New York-based private equity firm will also acquire most of the unit’s employees.

Credit Suisse said it is accelerating the radical restructuring of its investment bank by entering into «definitive transaction agreements» to sell what it says is a significant part of its securitized product group (SPG) to Apollo, as finews.com reported.

The deal, along with the sale of other portfolio assets to third parties is expected to reduce the assets of the SPG from $75 billion to $20, billion according to the bank.

The report did not give valuation details, and the companies declined to comment on the Sector Financial deal.

Source: AltAssets

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