Under the new deal, announced on Wednesday, Apollo Global Management will purchase from UBS $8 billion of “senior secured financing facilities” as part of the Swiss bank’s efforts to wind down its non-core legacy portfolio
KEYSTONE/© KEYSTONE / ENNIO LEANZA
UBS Group and Apollo Global Management have reached an agreement regarding the carveout of Credit Suisse’s former securitised products business.
Under the new deal, announced on Wednesday, Apollo will purchase from UBS $8 billion of “senior secured financing facilities” as part of the Swiss bank’s efforts to wind down its non-core legacy portfolio. UBS acquired Credit Suisse in 2023.
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UBS has combined all areas that are to be divested in the course of the Credit Suisse integration and restructuring in a unit called LCL (Non-Core and Legacy). A large part of the former Credit Suisse investment banking business is to be wound up.
The transaction is expected to result in a net gain of around $300 million for UBS in the first quarter of 2024 and a net loss of around $900 million for Credit Suisse AG over the same period.
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Commenting on the transaction, UBS CEO Sergio Ermotti declared: “This another example of our relentless focus on working with clients and counterparties to free up capital from non-core activities and reducing costs and complexity.”
Adapted from French by DeepL/sb
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