Wirecard’s $1 Billion Notes Auctioned Off at Fraction of Value

Wirecard AG convertible bonds are being sold at a fraction of their original value, unwinding a deal at the heart of the collapsed German payment processor’s brief alliance with SoftBank Group Corp.

The securities will be offloaded at 12% of their notional worth after an auction that took place Wednesday, according to a notice sent to bidders seen by Bloomberg. Credit Suisse Group AG, the bank handling the sale, received bids exceeding the 900 million euros ($1 billion) of notes on offer, the document shows.

The convertible bonds were collateral for complex securities that helped SoftBank offload risk on its Wirecard investment last year. That deal is now being unwound after the company’s collapse triggered a liquidation of the notes’ underlying collateral.

Successful bidders will now be notified of their allocations, according to Wednesday’s notice.

©2020 Bloomberg L.P.

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