Kkr‘s platform for turnaround of distressed companies Pillarstone Italy announced the closing of the acquisition of the entire capital of Italy’s leading operator of tlc, Sirti, last August 9th (download here the press release).
John Davison (managing partner and shareholder of Pillarstone Italy) has been appointed chairman (succeeding Angelo Miglietta) while Roberto Pisa is the new ceo (succeeding Stefano Lorenzi). The deal had been defined last Febraury (see here a previous post by BeBeez).
More in detail, Pillarstone, supported by its advisor Lazard, bought a 73.16% stake from Hiit, a parent holding where were concentrated stakes by industrial shareholders (Techint), the Bonomi family holding BI-Invest, private equity funds (Clessidra and 21 Investimenti) and mezzanine private debt funds (Ver Capital e Emisys Capital). Pillarstone also bought the remaining 26.84% stake from Banca Imi (Intesa Sanpaolo group), after the bank had converted a 40 million euros mandatory convertible bond some years ago. Legal advisors for the deal were Latham & Watkins (to Sirti’s lending banks), Dla (to Sirti), White & Case (to Hiit) and Nctm(to Pillarstone).
Part of Sirti’s debt has been bought by Pillastone and transformed in equity while part of the new cash that has been invested by Pillarstone in Sirti is in the form a debt. Anyway the final resul is that Sirti will receive a 25 million euros of new equity injection (see here Sirti’s assembly resolution).
Pillarstone actually bought 285 million euros of Sirti’s debt, including 200 million euros by Intesa Sanpaolo, securitized that debt with the banks that bought back part of the notes, while 37 million euros of debt (versus Banco di Brescia, Cariparma, Mps, UniCredit, Bpm, Credito Bergamasco and Credito Valtellinese) have been rescheduled. Banca Finint financed Sirti and facilitated the deal through its subsidiary Securitisation Services.
The announcement of the Sirti deal follows the one about the Italian shipping company Premuda last April (see here a previous post by BeBeez), when Pillarstone striked a similar deal with Banca Carige, Intesa Sanpaolo and Unicredit. Intesa Sanpaolo and Unicredit had previously transferred to Pillarstone Italy their loans issued to Burgo, Lediberg, Manucor, Alfa Park, and Cuki in exchange of securitized notes while Pillarstone has taken the governance of those companies and will support the relaunch of their business (see here the announcement published on the Italian Official Journal about the sale of the loans to Pillarstone Italy Spv srl).