Italy's UniCredit SpA has reduced its overall exposure to the Fino nonperforming loans portfolio to below 20%.
The bank said Feb. 7 that it had settled the disposal of a portion of its retained exposure in the B, C and D notes after entering binding agreements with funds managed by King Street Capital Management LP and funds and affiliates of the Fortress Investment Group. It also completed the placement of the Senior Guaranteed Notes issued by the Fino 1 securitzation vehicle.
The total value of the notes placed by the special-purpose vehicle is €617.5 million at a price of 100% and coupon of three-month Euro Interbank Offered Rate plus 150 basis points, Unicredit said. The transaction was oversubscribed and settlement was finalized Jan. 25.
The bank said the placement was the largest transaction to date under the Italian government scheme guaranteeing the securitization of senior tranches of nonperforming loans, also known as Gacs.
