(Bloomberg) -- Credit Suisse Group AG agreed to sell distressed debt assets for $1.27 billion to an arm of private-equity firm TPG.
The portfolio being sold to TSSP, a credit and special situations business, includes 270 instruments related to about 170 companies globally, Credit Suisse and TSSP said in a statement on Tuesday.
The transaction results in an extra charge of about $100 million for Credit Suisse, to be reflected in first-quarter results due May 10, according to the statement. That’s in addition to $99 million of distressed credit writedowns already announced.
Chief Executive Officer Tidjane Thiam is seeking to restore investor confidence in the Zurich-based bank as he accelerates a restructuring and heads off confusion over losses on risky fixed-income trades. The firm lost almost $1 billion since October on soured credit positions and Thiam has responded by pulling the bank out of trading securitized products in Europe, distressed debt and “long-term illiquid financing,” according to a March presentation.
To contact the reporter on this story: Vinicy Chan in Hong Kong at firstname.lastname@example.org. To contact the editors responsible for this story: Marcus Wright at email@example.com, Paul Panckhurst, Darren Boey
©2016 Bloomberg L.P.