UBS and Apollo have finalized the closing through which ATLAS SP concludes its Transition Services Agreement with UBS, and consequently, UBS will complete the Investment Management Agreement with Atlas. Under this agreement, Apollo has committed to acquiring $8 billion of senior secured financing facilities guaranteed by UBS. UBS continues with its strategies to further liquidate and simplify its Non-Core and Legacy (NCL) portfolio, while Apollo aims to expand Atlas as an independent origination platform through this closing.
From this transaction, UBS Group expects a net gain in the first quarter of 2024 of approximately $300 million, while Credit Suisse AG is expected to incur a net loss of $0.9 billion. The differences reflect adjustments made by UBS Group under IFRS regulations as part of the purchase price allocation at the closing of the acquisition of Credit Suisse Group, as well as provisions made by UBS Group in the second and third quarters of 2023 that are not recognized under Credit Suisse AG’s US GAAP accounting policies.
As previously mentioned, Atlas will become a fully independent platform focused on investment-grade asset-backed origination. Commenting on the transaction, Sergio P. Ermotti, CEO of UBS Group, stated, “We are pleased with this mutual agreement with Apollo. As we execute our integration plans, this is another example of our relentless commitment to working with clients and counterparties to free up capital from non-core activities and reduce costs and complexity.” Marc Rowan, CEO of Apollo, also expressed satisfaction with the transaction.
Managing Director of Credit Village, Roberto Sergio has more than 20 years of experience in NPL and distressed debt in the Italian and International market. He is the editor of the NPL column in Credit Village Magazine and the director of Credit Village's National NPL Market Observatory.