22/07/2014 – Expansion
“The sale of this portfolio will significantly add to the quality of the assets and liquidity of Catalunya Banc, influencing positively its credit balance”, the risk rating agency said and remarked the highest bid of Blackstone represented only 86% of the assets book value.
Moody´s praised the “innovative” approach taken by the nationalized bank that created an Asset Securitization Fund which will issue senior and junior bonds for Blackstone and the Frob (Spain´s Fund managing holdings in banks) respectively.
The senior debt will be generating yield until reaching the agreed (but not guaranteed) 13% return. Once that achieved, extra return from the portfolio will be divided between the both parties. “This way, the Frob can benefit from any portfolio evolution. Even if the return does not hit 13%, there will be no extra loss”, explains Moody´s.
Original article: Expansión
Translation: AURA REE