Practice Areas - Debt Capital Markets Law Firms and Lawyers
| Deal Date: | 18-02-2011 | Practice Area: | Debt Capital Markets |
| Deal Title: | Credit Suisse contingent conversion capital instrument | Industry: | Banks |
| Description: |
Linklaters has advised Credit Suisse on the first coco - contingent conversion capital instrument - to be issued by a listed bank which is designed to comply with the Tier 1 and Tier 2 eligibility requirements under new Basel III guidelines.
Linklaters has advised Credit Suisse Group on a private placement of US$6bn Tier 1 Buffer Capital Notes and offering of US$2bn 7.875% Tier 2 Buffer Capital Notes, announced on 14 February 2011. Each series contains a "non-viability" conversion feature required under Basel III. The feature is intended to result in the conversion of the securities into equity before any public sector intervention is needed to support the bank. It is the first time that the concept of "non-viability" has been expressly defined in the context of a capital issue. The Tier 1 BCNs and Tier 2 BCNs are also the first capital instruments designed to comply with draft Swiss "too big to fail" rules requiring key banks to hold Buffer Capital.
The Linklaters team was led by capital markets partner Carson Welsh and capital markets managing associate Jonathan Fried, both in London.
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| Financial Center: | London | Value: | 5001.00-10000.00 |
| Advised Party: | Issuer | Law Firm | Linklaters |
| Issuer Jurisdiction: | Switzerland | Listing Jurisdiction: | United Kingdom |
| Classification: |
Equity-Linked Securities Convertible Bonds |
Lawyer | Carson Welsh |
