Allen & Overy advises JP Morgan and UBS on financing agreements for demerger of EUR9 billion non-performing assets portfolio
14 October 2020
Allen & Overy has advised JP Morgan and UBS in the definition and closing of the financing agreements supporting the demerger of a non-performing assets portfolio for a value of around EUR9 billion from Banca Monte dei Paschi di Siena (MPS), a leading Italian bank, in favour of Amco S.p.A., a leading company in non-performing exposure management.
The agreements comprise, in particular, a bridge loan of around EUR3 billion to MPS, that will be refinanced in part with a limited recourse loan to Amco through a securitisation vehicle and a EUR1 billion secured financing from the financing banks. The financing structure is particularly innovative as it benefits from an allocated asset pool consisting of the receivables and the other assets which are the object of the demerger, according to the new rules introduced by art.7.1(a) of 130/99 Law as integrated by the “Milleproroghe” Decree.
Partner Craig Byrne commented: “We are proud to have worked on this ground breaking and innovative transaction which has allowed us to showcase our expertise in complex legal, tax and regulatory matters deploying cross-border and cross-department teams. We are very pleased that we were able to assist JP Morgan and UBS in this matter.”
Allen & Overy acted with a multi-jurisdictional and cross-departmental team headed by partners Craig Byrne, Stefano Sennhauser and Sally Onions, counsels Frederic Demeulenaere and Pietro Bellone, senior associates Isabel Tinsley and Sarah Capella and associate Evangeline Schumacher. Partner Francesco Guelfi with senior associate Elia Ferdinando Clarizia advised on the tax aspects of the deal. Senior counsel Lisa Curran and counsel Juri Bettinelli were also involved in respect of the regulatory and insolvency aspects of the transaction. In the deal an A&O Luxembourg team composed of counsels André Hommel and Pierre-Henri Maroteaux, and associates Ruslana Hrischeva and Nicolas Madelin advised on Luxembourg law matters.
Allen & Overy also assisted Bank of New York Mellon in various roles including as account bank and custodian with a separate team composed of partner Morgan Krone and associate Alana Burton (London), and counsel Chris Angus and associate Isabel Overton (Dubai).
For further information, please contact Rajiv Pattni, Rajiv.Pattni@allenovery.com, on +44 203 088 1237.