The transaction implements a pioneer legal structure sequencing a hive-down of PB’s recovery banking unit (RBU) into a licensed servicing NewCo, a retained securitisation of a approx. €27 billion GBV ringfencing the serviced portfolio and a bespoke SLA framework for the NPE, REO and reverse servicing arrangements.
The RBU will be hived-down into a separate legal entity (“NewCo”), valued at €410m, which will be fully consolidated by Intrum and will obtain a license under Greek law 4354/2015 to service non performing exposures. Intrum will acquire 80 per cent of the shares in the NewCo corresponding to a purchase price of €328m with a long-term strategic partnership with PB owning the remaining 20 per cent of the shares. Prior to closing, the majority of PB’s NPE portfolio will have been transferred to a securitisation Special Purpose Vehicle (SPV) and NewCo will enter into agreements regarding servicing of PB’s Non-Performing Exposures (NPE) and REO portfolio on an initial ten year-term.
This is the largest, in terms of both AuM and value, deal in the Greek servicing market; it not only attests the great potential of this fast emerging market but also paves the way for alternative structures that banks can use to both alleviate the operational complexities of servicing NPL portfolios and draw value form their non-performing books.
We are proud of the leading role of our finance team in designing, negotiating and implementing the transaction with the joint forces of our tax, employment and anti-trust teams. The transaction was led for Intrum by partner, head of the Finance and Capital Markets group, Christina Papanikolopoulou. The Zepos & Yannopoulos team included Finance & Capital Markets partners Elena Papachristou and Kely Pesketzi, senior associate Mary Nigritinou and associates Athina Palli and Alexandros Georgiou. Partners Maria Zoupa and Alex Karopoulos advised on tax matters, Manolis Zacharakis and Rania Papakonstantinou on employment law and prof. Manos Mastromanolis on anti-trust.
Barclays and Goldman Sachs acted as Intrum’s financial advisor and White & Case acted as English law counsel.
