Swiss banking giant UBS Group AG and Apollo Global Management Inc of the United States announced on Wednesday that they have entered into an agreement to finalize the spin-off of investment firm Atlas SP.
This is the final step in carve-out of former Credit Suisse Securitized Products business, Atlas SP in which UBS will close out an investment management agreement with Atlas.
As part of the deal, Apollo will purchase $8 billion of senior secured financing facilities from UBS.
UBS Group expects to recognize a net gain in the first quarter of around $0.3 billion from the conclusion of these agreements and the assignment of the senior secured financing facilities.
Credit Suisse AG is expected to recognize a net loss of around $0.9 billion.