Bain Capital Credit goes to the rescue of Fincos, a construction company based in Mondovì (Cuneo) for 60 years in the business of major works and which is headed by the entrepreneur Stefano Bongiovanni.
The transaction, facilitated by the advisor Mediobanca, will allow Fincos to restructure its debts and restart real estate contracts for 250 million euros, of which 50 million will be the result of new investments. In detail, Bain Capital Credit will conduct the transaction through its Italian subsidiary Aquileia Capital Service (the former Heta Asset Resolution Italia (Harit), the bad bank of Hypo Alpe-Adria Bank purchased in February 2017, see here a previous post by BeBeez). ACS will acquire the credit exposure of the banks towards Fincos and will convert those loans into equity. At the same time the real estate assets will gain value. “In this way the project guarantees perfect business continuity. It defends the value of real estate, protects employment levels and relaunches the offer on the real estate market”, explained Mr. Bongiovanni.
The Fincos portfolio includes real estate initiatives such as the historic Grand Hotel Savoia and the new Savoia Palace in Cortina d’Ampezzo, the former Palazzo delle Poste in Verona and the Belvedere residence in Quarto in Genoa. Construction sites that, thanks to these new financial resources, have started again their activity already. The development plan also envisages the launch of new contracts in Cuneo.
The other advisors to the transaction are Gianni Origoni Grippo Cappelli & Partners on the legal front for Fincos, along with professionals Marzio Ciravegna and Pier Giorgio Olivero of Cuneo; while Bain Credit is legally supported by LinkLaters and by EY as for m&a matters.