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 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