Following the signing of binding agreements entered into with funds managed and affiliated companies of Fortress Investment Group and funds managed by King Street Capital Management LP on December 12, 2017, UniCredit announced the settlement of the sale of a portion of its exposure in class B, C and D issued by the securitization vehicles Fino 1 Securitization Srl and Fino 2 Securitization Srl (“Fino BCD Securities”).
In addition to the information already disclosed, UniCredit also announced the completion of the placement of senior secured notes (“Titoli Fino Senior Garantiti”) issued by the vehicle FINO 1 Securitization Srl (“SPV”), which benefit from the Guarantee on Bad Securitizations ( GaCS) and enjoy the highest rating assigned in Italy in the context of securitization with GaCS: A2 by Moody's and BBB (high) by DBRS.
The total amount placed of Senior Guaranteed Securities issued by the SPV is 617,5 million euro at a price of 100,00 and a 3-month Euribor coupon +150bp, which represents the entire senior tranche net of a portion of the 5 percent held by UniCredit. The transaction received overbids with a settlement price set on January 25, 2018. A syndicate of banks comprising UniCredit Bank AG, together with HSBC, Natixis, NatWest Markets and Mediobanca, oversaw the placement process of the GaCS transaction. In the FINO transaction, UniCredit Bank AG and Morgan Stanley acted as Financial Advisors of UniCredit, while Mediobanca acted as Financial Advisors of Fortress.
The placement of the senior guaranteed notes (“Fino Senior Guaranteed Notes”), issued by the vehicle FINO 1 Securitization Srl, will serve to create a liquid market of ABS relating to the exposure of non-performing Italian loans, since it is the first tranche of this type offer to investors. With the settlement of the BCD Notes and the placement of Senior Guaranteed Fino Notes, UniCredit has successfully completed the second and final phase of the Fino Project, which brought the bank's overall position in the Fino portfolio below 20%.
Thanks to the positive outcome of these important transactions, and as already communicated on 12 December 2017, UniCredit has notified the European Central Bank (“ECB”) of its intention to recognize the “Significant Risk Transfer” on the three securitizations starting from 31 March 2018 The necessary information set is being finalized on the basis of the related regulatory procedures.
