UBS buys back $7.93B of Credit Suisse senior notes in its largest debt reduction to date

UBS executed its biggest single step yet to cut down the legacy liabilities it took on with the 2023 takeover of Credit Suisse, repurchasing $7.93 billion in principal amount of former Credit Suisse senior notes. The transaction was carried out through nine simultaneous cash tender offers, with settlement set for September 14. The offers opened on September 2 and closed on September 10. UBS initially set a maximum purchase consideration that it later increased to about $5.85 billion, citing strong investor participation. The repurchased securities were denominated in US dollars, euros and British pounds, with maturities running out to 2033. Some notes carried coupons as high as 9.016%. The buyback follows a $7.7 billion tender completed in November 2025, lifting the cumulative amount of retired Credit Suisse debt to roughly $15.6 billion. UBS now estimates remaining legacy Credit Suisse debt at about $29 billion, down from roughly $90 billion at the outset. UBS said the program supports active management of its total loss-absorbing capacity (TLAC). Retiring old Credit Suisse notes while issuing new UBS instruments allows the bank to reshape its capital buffer on its own terms rather than carry forward the credit profile of its former rival. The broader integration is expected to be completed by the end of 2026, with merger-related cost efficiencies reported to exceed $12 billion. UBS shares fell about 2.8% around the announcement, a move seen as aligned with broader market trends rather than a specific reaction to the buyback. Swiss regulators orchestrated the Credit Suisse rescue over a single weekend in March 2023 to avert a Lehman-style contagion. UBS's reduction from $90 billion in inherited debt to $29 billion underscores accelerating progress, following $7.7 billion retired in November 2025 and $7.93 billion in the latest round.