LONDON, June 29, 2018 – Bain Capital Credit, LP, (“Bain Capital Credit”), announces the acquisition of a portfolio of Unlikely-to-Pay (“UTP”) corporate loans, known as Project Valery, from Crédit Agricole Cariparma S.p.A., Crédit Agricole Friuladria S.p.A. and Crédit Agricole Carispezia S.p.A.
This is the first large-scale, pure UTP transaction in Italy, with a total book value of approximately €450 million. The borrowers of UTP loans are unlikely to meet their payment obligations, but are not in default.
This is Bain Capital Credit’s seventh portfolio acquisition in Italy and the second portfolio acquired from the Crédit Agricole Group. Bain Capital now manages approximately €2.6bn of assets across non-performing loans, leases and real estate assets in the country.
“We are delighted to have completed this milestone acquisition. We believe it will pave the way for other large sales of UTP portfolios,” said Alon Avner, a Managing Director and Head of Bain Capital Credit’s European business. “Italy is one of our key markets and we remain committed to further investment.”
“This transaction gives us plenty of opportunity to increase our presence in the space and access to high-quality real estate collateral,” said Fabio Longo, a Managing Director and Head of Bain Capital Credit’s European Non-Performing Loan & Real Estate business. “This transaction demonstrates our ability to complete highly complex and innovative transactions.”
Bain Capital Credit-owned Aquileia Capital Services (“ACS”) supported Bain Capital Credit during the acquisition process and will service the portfolio. ACS has consolidated its role as a leading platform for the management of real estate assets and distressed and sub-performing loans in Italy.
“This transaction shows the continuing development of Bain Capital Credit and ACS’ capabilities in Italy,” said Brad Palmer, a Managing Director and Head of European Portfolio Operations at Bain Capital Credit and Chairman of ACS.
In addition to ACS, Bain Capital Credit was advised by Etna Advisors in the underwriting of the portfolio. K2Real, Avalon Consulting, Eagle & Wise and Axia Real Estate acted as real estate valuation providers; Linklaters, DLA Piper, PwC and Kirkland & Ellis provided legal and tax counsel.
About Bain Capital Credit
Bain Capital Credit (www.baincapitalcredit.com), founded as Sankaty Advisors in 1998, invests up and down the capital structure and across the spectrum of credit strategies, including leveraged loans, high-yield bonds, distressed debt, private lending, structured products, non-performing loans and equities. Our team of more than 200 professionals creates value through rigorous, independent analysis of thousands of corporate issuers around the world. In addition to credit, Bain Capital invests across asset classes including private equity, public equity and venture capital, and leverages the firm’s shared platform to capture opportunities in strategic areas of focus.