Banca Monte dei Paschi di Siena SpA signed an agreement with Quaestio Holding SA and credit risk information provider Cerved Group SpA to sell its nonperforming loan platform for €52.5 million.
The NPL platform will be sold to a newly incorporated company jointly owned by Quaestio Holding and Cerved Group, the bank said, adding that the agreement also outsources servicing of any future NPLs it generates to this company.
However, the servicing agreement excludes NPLs as of the end of 2016, which are to be sold for €28.6 billion, Monte dei Paschi said.
The agreement also includes a potential €33.8 million earn-out based on economic results achieved by 2025, the bank said, adding that the NPL platform sale is expected to be carried out by the first quarter of 2018, subject to approval by the concerned supervisory authority. The deal is also subject to the realization of the lender's €5.4 billion precautionary recapitalization approved by the European Commission.
In July, Monte dei Paschi signed a binding agreement with Quaestio Holding unit Quaestio Capital Management SGR SpA Unipersonale that will see the Atlante II fund invest in the securitization of a portfolio comprising €26.1 billion of the Italian lender's nonperforming loans.
Mediobanca acted as financial adviser on the deal, while Bain & Co. acted as strategic adviser to Monte dei Paschi. Law firm BonelliErede acted as legal adviser to the bank. Cerved Group and Quaestio Holding were assisted by KPMG Corporate Finance as financial adviser, while Latham & Watkins and Chiomenti Studio Legale acted as their legal advisers.