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Credit Suisse helps Swiss companies find funding

29th September 2005

Credit Suisse is offering two new alternative forms of corporate financing to help both Swiss SMEs and larger companies obtain quasi-equity resources more easily. By providing these innovative financing instruments, CSA Mezzanine and Preferred Pooled Shares (PREPS), Credit Suisse hopes to meet rising demand from companies for growth financing options which do not affect their ownership structure.

Both instruments are granted exclusively as subordinated loans. At the same time, Credit Swiss says the instruments represent an attractive investment segment for investors.

The CSA Mezzanine financing has a term of five to eight years. CSA Mezzanine is geared toward Swiss SMEs that generate sales of approximately CHF10 million and a funding requirement ranging between CHF0.5 million and SFR5 million. Companies can use this instrument to finance an expansion, a management buyout or regulate their successor planning.

CSA Mezzanine financing from Credit Suisse is exclusively issued in the form of subordinated loans from Credit Suisse Investment Foundation (CSA). The investors in Credit Suisse Investment Foundation - pension funds - can tap into an alternative investment segment thanks to Mezannine financing. Credit Suisse Asset Management (CSAM) is the portfolio manager of Credit Suisse Investment Foundation.

PREPS meanwhile is an innovative securitization platform by means of which larger companies can procure economic equity capital (subordinated debt) indirectly on the capital market. The transaction platform enables companies with sales totaling approximately CHF50 million to procure quasi-equity resources. The Euro is always the reference currency. PREPS has a seven-year term and is suitable for companies with funding requirements of between E3-15 million.

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