(Corrects in lede and headline to say that UBS bought back 6.1 bln Sfr of bonds (not 16 bln francs' worth)
ZURICH, Dec 17 (Reuters) - UBS AG said on Thursday it had bought back 6.1 billion francs ($6.1 bln) worth of senior, subordinated debt and covered bonds, after offering to buy back 16 billion francs' worth of debt in a cash tender, as it seeks to benefit from lower interest rates.
UBS expects to record an expense in the fourth quarter of 2015 related to this transaction of about 272 million Swiss francs, Switzerland's biggest bank said in a statement.
It said it expected to recover the expense in just over 1-1/2 years primarily through reduction of future interest expenses from purchased bonds. ($1 = 0.9952 Swiss francs) ($1 = 0.9966 Swiss francs) (Reporting by Silke Koltrowitz; Editing by Gopakumar Warrier)