Greece-based Piraeus Bank SA agreed to sell a portfolio of nonperforming exposures to U.S.-based Bain Capital Credit LP, subject to customary conditions and Greek regulatory approvals.
The book comprises nonperforming and denounced corporate credit exposures secured with real estate collateral, with total legal claims equivalent to €1.95 billion and an on-balance sheet gross book value of €1.45 billion.
The bank said the deal is expected to generate about 20 basis points of common equity Tier 1 capital and reduce its nonperforming exposure ratio by over 100 basis points.
It added in a subsequent release May 31 that Bain Capital Credit will pay €432 million for the portfolio. It disclosed the information at the request of the Hellenic Capital Markets Committee.
UBS Ltd. was the exclusive financial adviser for Piraeus on the deal, while Alix Partners and Ernst & Young assisted in the preparation of data-rooms, real estate valuations and other materials. Shearman & Sterling and Zepos & Yannopoulos, respectively, served as international and Greek legal counsel to Piraues.
Bain Capital Credit had Mount Street as loan servicing specialists. Property Solutions Asset Management and Danos Real Estate provided real estate valuation advice, while Kirkland & Ellis, Karatzas & Partners and Andreas Angelidis & Associates gave legal assistance. Alvarez & Marsal also supported Bain on the deal and Deloitte provided other financial due diligence and advisory services.
Bain Capital Holdings LP is the ultimate parent of Bain Capital Credit.
