There was a lot of activity on the private debt and direct lending front in this first part of 2019, but there was a lack of large transactions on the primary market, while there were important transactions on the secondary market for both performing and Utp loans. Mainly thanks to secondary operations, the total value of the operations mapped by BeBeez Private Data was nevertheless important, given that we speak of 7,574 billion euro in 7 months, compared to a total of 10.8 billion euro in the whole 2018 (subscribers to BeBeez News Premium may see here BeBeez‘s Report on Private Debt and Direct lending for 7 months in 2019 and here BeBeez‘s Report on Private Debt and Direct lending 2018, find out how to subscribe for just 20 euros per month here).
Dutch ING Bank sold to Goldman Sachs and, for a minority, to Banca Finint a portfolio of leased, performing and non-performing loans, contracts and assets, relating to 4k positions, for a gross book value of 1.6 billion of euros (see here a previous post by BeBeez).The transaction was carried out by securitizing the assets with a structure that provides, in addition to the assignment of the credits to an spv, the simultaneous demerger regulated by the Dutch legislation on underlying contracts and assets underlying, which have been transferred to a leasing company (LeaseCo) that will buy relationships and assets, applying the new Italian discipline of securitization which has made a series of changes to the Law 130/1999 on securitization, in particular in relation to of UTPs and Real Estate Owned Companies (see the BeBeez Insight View here, reserved to BeBeez News Premium subscribers, find out how to subscribe for just 20 euros per month here).
Banca Ifis and Credito Fondiario are holding talks for a joint venture for the sector of servicing and the investment in distressed credits (see here a previous post by BeBeez). The firms agreed to hold exclusive talks for 60 days and signed a non-binding letter of intents for creating a platform that may invest in all asset classes of the distressed credits field (secured, unsecured, Npl, Utp, leasing, real estate, and consumer credit). Credito Fondiario may hold at least 51% of the jv.
Prelios and Intesa Sanpaolo signed an agreement for the management and sale of a portfolio of UTPs worth in the region of 10 billion euros (see here a previous post by BeBeez). Prelios will manage for ten years an amount of corporate and SMEs UTPs amounting to 6.7 billion and the sale through securitization of Utps worth 3 billion. The senior tranche of the asset-backed securities that the SPV will issue will be worth 70% of the portfolio price and Intesa Sanpaolo will subscribe them. The price of the junior and the mezzanine tranche is of 30% of the price of the portfolio, Intesa Sanpaolo will subscribe 5% of them while Prelios will subscribe 95%.
Illimity, the listed Italian lender and investor in distressed credits, developed a turnover of 1.19 billion euros linked to loans to SMEs and corporate NPLs (see here a previous post by BeBeez). For 2020, the company aims to have assets worth 3.5-4.3 billion, a net profit of 55-70 million and a 9-10% Roe. Targets for 2023 are assets of 6.6 billion, net income of 280 million and a 25% Roe.
Hoist Finance made a securitization of a portfolio of Italian unsecured Npls worth 225 million euros (see here a previous post by BeBeez). CarVal Investors will subscribe to the senior tranche which is 95% of the purchasing price, Hoist the junior tranche. Such a transaction may improve by 60 basis points the CET1 ratio of Hoist Finance, that will have resources for investments of further 100 million. Hoist Finance is listed on Stockholm exchange
Monte dei Paschi sold to Cerberus Capital Management an UTPs portfolio of 455 million euros (see here a previous post by BeBeez). MPS sold secured corporate credits. Monte dei Paschi also sold to Illimity distressed credits worth 700 million euros (see here a previous post byBeBeez). Secured and unsecured credits amount to 240 million with the warranty of ISMEA.
Phinance Partners, a consulting firm for structured and real estate finance that Enrico Cantarelli and Alessandro Mitrovich head, carried on the securitization of two portfolios of unsecured credits with a face value amounting to 180 million euros (see here a previous post by BeBeez). Banco Desio sold a portfolio of 32 million, while an undisclosed Italian investor in NPLs sold another portfolio
Dea Capital signed an agreement for acquiring 35% – 44% of Quaestio Holding and for allowing Dea Capital Alternative Funds to manage the Quaestio Capital Management funds Atlante and Italian Recovery Fund (See here a previous post by BeBeez). These two transactions should close by 2020.
Michel Lowy said to BeBeez that Hong Kong banking group SC Lowy, who acquired a controlling stake of Italy’s Credito di Romagna in April 2018, aims to grow the firm’s activity in the Italian sectors of real estate, shipping, mid-market corporates, also those in need of a financial restructuring (see here a previous post by BeBeez). Lowy founded SC Lowy together with Soo Cheon Lee, a seasoned investment banker he worked with at Deutsche Bank
The southern Italian region of Campania issued Garanzia Campania Bond, a Basket Bond that aims to support the local SMEs (See here a previous post by BeBeez). On 2 August Sviluppo Campania signed an agreement with Rti (Raggruppamento Temporaneo di Imprese) a consortium of Mediocredito Centrale – Banca del Mezzogiorno and Fisg (part of Gruppo Banca Finint). The basket will have a value of up to 148 million euros and Sviluppo Campania will secure it with 37 million of the European Funds.
In 1H19 Confidi Systema!, an Italian lender, issued a secured financing to Italian SMEs amounting to 304.17 million euros for a total outstanding of 993 million (see here a previous post by BeBeez). Confidi Systema! is particularly ctive as investor in minibonds issued by Italian SMEs. That’s why it is one of the investors that BeBeez Private Data monitors. Find out here how to subscribe to the Combo Version that includes the reports and the insight views of BeBeez News Premium 12 months for 110 euros per month.
De Angeli Prodotti, a producer of conductor for the energy sector, issued a 10 million euros minibond that Unicredit entirely subscribed (See here a previous post by BeBeez). The bond has a 7 years term and will support the R&D investments of De Angeli Prodotti. Luca Mora is the chairman and controlling shareholder of De Angeli Prodotti who generates abroad 50% of its 150 million sales with an ebitda of 10.5 million
S&R Farmaceutici, an Italian pharmaceutical company, issued a 3.8 million euros minibond that Unicredit entirely subscribed (see here a previous post by BeBeez). The bond will come to maturity in 7 years and pay a floating rate coupon linked to the 3 months Euribor. Romolo Rossi is the company’s chairman and Mauro Dionigi the ceo. The company will invest these proceeds in the acquisition of licences for new drugs. S&R has sales of 13.6 million.
Banco delle Tre Venezie carried on a securitization of secured corporate performing credits through the SPV Magnolia BTV, who listed on Milan market asset backed A Class securities worth 142.9 million euros due to mature in July 2045 and paying a coupon of 50 bps plus 3 months Euribor (see here a previous post by BeBeez). These securities received an A rating from DBRS. Magnolia BTV issued an unrated junior tranche of 47.5 million.
Fitch confirmed a BBB rating with a stable outlook for Alperia, an Italian utility (See here a previous post by BeBeez). In December 2016 Alperia placed a green bond of 150 million euros.