There were some interesting news in the Italian NPLs sector in the week ending yesterday.
The list of non-binding bidders for a portfolio of 6 billion of euros of gross NPLs of Crédit Agricole (CA) includes Cerberus-Banca Ifis, CRC-Bayview, Arrow Global, Hoist Finance, and D.E. Shaw (see here a previous post by BeBeez). In such portfolio there are four Luxembourg SPVs for securitisation that contain unsecured credits to private individuals and SMEs. Kpmg, CA’s advisor, received a non-binding bid also from Spaxs, the Italian Spac that Corrado Passera and Andrea Clamer launched. Spaxs is acquiring Banca Interprovinciale for transforming it in an operator in the field of NPLs and lender to SMEs.
Società per la Gestione di Attività spa (SGA) acquired NPLs from Banca Popolare di Vicenza and Veneto Banca (Veneto Banks). The news have expected for a long time (see here a previous post by BeBeez). The gross value of these portfolios is in the region of 18 billion of euros and about half ot that value is represented by unlikely-to-pay loans. Many turnaround investors are now looking at that UTPs.
Intesa Sanpaolo accepted from Intrum Iustitia a binding offer worth 500 million of euros for its platform for bad loans as well as an offer of 3.1 billion for a portfolio of gross NPLs amounting to 10,8 billions of which the majority are secured loans (see here a previous post by BeBeez). The Italian bank would cash a net profit of 400 million euros. Intrum won the competition of Chinese firm CEFC and Negentropy Capital. A servicer capable to manage 40 billions of gross credit will born out of the combination of the platforms of Intrum (51%) and Intesa (49%). The structure of the securitization of the portfolio of Intesa’s NPLs for which Intrum made an offer would be the following: a Senior Tranche for 60% of the portfolio’s value; a Junior Tranche and a Mezzanine tranche for the remaining 40%. Intesa Sanpaolo will retain a 49% interest in the SPV issuing the abs, while Intrum will own 80% of the 51% of the holding in the SPV and US asset manager CarVal Investors (on behalf of its managed and advised funds including Fondaco sgr) have committed to co-invest for an amount corresponding to the remaining 20% of the 51% holding in the SPV.
As for the private debt sector, Piazza Italia, the Italian fashion retailer, issued a minibond of 12 million of euros due to mature in 2024 with a 5.25% coupon and an amortizing reimboursement structure that will start to pay from the third year (see here a previous post by BeBeez). In 2016 Piazza Italia posted sales of 394.9 million, an ebitda of 11.3 million and net financial debt of 36.5 million. The company will invest the proceeds of this issuance in opening new shops and refurbish the existing ones.
