NEW YORK and SAN
FRANCISCO, May 3, 2016 /PRNewswire/
-- TSSP today announced the acquisition of credit assets
including a part of Credit Suisse's distressed credit portfolio for
approximately $1.27 billion,
utilizing no portfolio leverage. Additional terms of the
transaction were not disclosed.
The Credit Suisse distressed portfolio purchased by TSSP is
comprised of over 270 instruments across asset types and
geographies relating to approximately 170
companies.
As previously disclosed, the Credit Suisse Global Markets
division has accelerated its strategic implementation of a business
model that is better aligned to the overall Group strategy with
lower risk appetite and reduced volatility, for the benefit of
their core clients and shareholders. This transaction reduces
Credit Suisse's overall distressed credit exposure by $1.24 billion. In addition to the $99 million of writedowns disclosed in respect of
the overall distressed portfolio on March
23, this transaction has resulted in a further charge of
approximately $100 million, the bulk
of which will be reflected in Credit Suisse's 1Q results. These
results are due to be announced on May
10 and a full update on Credit Suisse's distressed credit
exposure will be provided at that time.
David Miller, co-head of Credit
Suisse's Credit Product business commented: "The successful
completion of this transaction with one of our highly-valued
clients demonstrates the significant progress we are making on our
strategic goals."
Clint Kollar, a TSSP partner
said: "The Credit Suisse distressed credit desk has been a
long-time trusted partner to TSSP globally and we are pleased they
selected TSSP to help it quickly execute on its strategy.
This transaction leverages our global team's ability to provide
speed, certainty and value to financial institutions and other
sellers in complex situations. The portfolio we are acquiring
has deep, long-term potential and fits well with our patient and
flexible capital."
Contemporaneous with the transaction, Bob Franz, Credit Suisse's Head of U.S. Credit
Trading, and Ken Hoffman, the bank's
Head of Distressed Research & Trading, will lead the formation
of a new asset management firm to assist in servicing these assets
and other similar assets in the future.
TSSP
TSSP is the global credit and special situations
platform of TPG. Co-founded in 2009 by Chief Investment
Officer Alan Waxman, TSSP has
approximately $19 billion in assets
under management. TSSP has a long-term oriented, highly
flexible capital base that allows it to invest across industries,
geographies, capital structures and asset classes, in distressed
assets but also healthy and growth companies. TSSP's
investments are typically complex to source, analyze and execute..
For more information, please visit
www.tpg.com/platforms/tssp.
Credit Suisse AG
Credit Suisse AG is one of the
world's leading financial services providers and is part of the
Credit Suisse group of companies (referred to here as 'Credit
Suisse'). As an integrated bank, Credit Suisse offers clients its
combined expertise in the areas of private banking, investment
banking and asset management. Credit Suisse provides advisory
services, comprehensive solutions and innovative products to
companies, institutional clients and high-net-worth private clients
globally, as well as to retail clients in Switzerland. Credit Suisse is headquartered in
Zurich and operates in over 50
countries worldwide. The group employs approximately 48'200 people.
The registered shares (CSGN) of Credit Suisse's parent company,
Credit Suisse Group AG, are listed in Switzerland and, in the form of American
Depositary Shares (CS), in New
York. Further information about Credit Suisse can be found
at www.credit-suisse.com.
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SOURCE Credit Suisse AG