Homburger advises UBS on issuance of USD 1bn AT1 Notes

UBS Group AG has successfully completed its offering of USD 1bn AT1 Notes, which are redeemable at the option of UBS after seven years and two months. The Notes are “high trigger” regulatory capital instruments that are eligible to fulfill UBS Group AG’s Swiss going concern requirements.

While the Notes are initially subject to write-down in accordance with their terms upon occurrence of a “Trigger Event” or a “Viability Event”, the terms of the Notes provide that, following approval of a minimum amount of conversion capital by UBS Group AG’s shareholders, upon occurrence of a such an event, the Notes will be converted into ordinary shares of UBS Group AG in accordance with their terms rather than be subject to write-down. The Notes are governed by Swiss law and have been provisionally admitted to trading, and application has been made for definitive admission to trading and listing of the Notes, on the SIX Swiss Exchange.

Homburger advised UBS with respect to all regulatory, transactional and tax aspects of Swiss law. The Homburger team was led by Benedikt Maurenbrecher (pictured left) and Stefan Kramer (pictured right). The team included Lee Saladino, Daniel Hulmann and Yulia Shaburnykova, all capital markets), as well as Stefan Oesterhelt, tax.