UBS, Apollo enter into agreement to complete carveout of ATLAS SP

UBS (UBS) and Apollo (APO) announced they have entered into an agreement pursuant to which ATLAS SP, former Credit Suisse (CS) Securitized Products business, has concluded its Transition Services Agreement with UBS and UBS will close out its Investment Management Agreement with Atlas. As part of this agreement, Apollo will purchase USD 8B of senior secured financing facilities from UBS. For UBS, these actions will allow the bank to further accelerate its plans to unwind and more efficiently simplify its NCL portfolio, while minimizing any disruption to clients, and reduce risk-weighted assets and leverage ratio denominator in NCL. UBS Group expects to recognize a net gain in the first quarter of 2024 of around USD 0.3 billion from the conclusion of these agreements and the assignment of the senior secured financing facilities while Credit Suisse AG is expected to recognize a net loss of around USD 0.9 billion. For Atlas and Apollo, the agreement marks Atlas’ evolution into a fully independent platform focused on investment grade asset-backed origination.