Hoist Finance carried out the first investment grade securitization in Italy of an NPL portfolio made up entirely of unsecured loans. The deal was on a 5 billion euros GBV portfolio. The transaction was completed in early December (see the press release here), but in Italy it had not been announced. Deutsche Bank and UBS were the arrangers of the operation.
The portfolio, which includes corporate (42.6%) and retail (57.4%) loans, was securitized by the vehicle Marathon SPV srl, which issued 337 million euros of asset backed securities divided into three tranches. The senior notes (85% of the amount issued) pay a coupon of 1.8%, have obtained the BBB (sf) ratings of DBRS, Baa2 (sf) of Moody’s and BBB + SF of Scope and have been retained by Hoist Finance. The mezzanine and junior notes (15% of the amount issued) were 95% subscribed by funds managed by CarVal Investors while 5% were retained by Hoist Finance. The subordinate notes pay an IRR with a combined limit of 15%, the mezzanine ones have a B (high) (sf) rating of DBRS, B1 (sf) of Moody and BB SF of Scope, while the junior notes have no rating.
At the same time, Hoist Finance unwinded the securitization carried out last August on a 225 million euro unsecured NPL portfolio that had again involved CarVal Investors, but in that case relatively to the senior tranche (see here a previous article by BeBeez). The cost of the new transaction was 6 million euros and also includes the unwinding of the previous securitization.
Hoist Finance is a Swedish company, listed in Stockholm, specializing in investments and management of performing and non-performing loans. Hoist Finance Italia is the former TRC spa, a Roman servicer founded by Clemente Reale and acquired by Hoist Finance in 2014, after a collaboration since 2011.In October 2018 Hoist also acquired gruppo Maran again in Italy, headquartered in Spoleto (see here a previous article by BeBeez). Reale today is at the helm of Hoist Italia, which is based in Rome and Lecce.
Italy has become the first revenue market for the Swedish group and Hoist Finance is aiming for acquisitions and a banking partnership in Italy, Mr.Reale himself declared it in June 2019, commenting on Hoist’s first quarter results (see here a previous article by BeBeez). The interim report of Hoist Finance’s nine months at the end of September 2019 shows that most of the revenues come from Italy with SEK 710 million (66.3 million euros) out of a total of SEK 2269 million (211, 7 million euros).
In December 2017, Hoist Finance bought the unsecured 1.8 billion Sun Npl portfolio from Banco Bpm, co-investing with J Invest (see here a previous article by BeBeez) and 24 million euros of Utp, mostly secured, by CreVal (see here a previous article by BeBeez). In January 2017, however, Hoist Finance had bought, again from Banco Bpm, an unsecured NPL portfolio of 641 million euros (see here a previous article by BeBeez). In March 2019, it signed an 18-month forward flow agreement with an Italian financial institution on a 90 million euro NPL portfolio (see the press release here).