The Luzzatti Consortium has successfully completed a multi-originator securitization of non-performing loans (NPLs) worth €205 million, reinforcing structured finance mechanisms in Italy’s NPL market. Named Luzzatti Pop NPLs 2024, the transaction involved major legal firms and financial institutions, highlighting increasing market sophistication and investor confidence.
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Structure of the Securitization
The transaction involved the issuance of securitization notes by a dedicated vehicle, divided into three tranches:
- Senior Notes: €47.85 million
- Mezzanine Notes: €7 million
- Junior Notes: €1.5 million
Gardant was assigned as both the master servicer and special servicer, while Axis managed the portfolio segment composed of NPLs with existing repayment plans under a co-servicing arrangement.
Legal Advisory Teams
Several top-tier law firms played a crucial role in facilitating the transaction:
Hogan Lovells
Provided legal assistance to the Luzzatti Consortium and the pool of sellers. The team was led by Managing Partner Italy Patrizio Messina and Counsel Andrea Cicia, supported by Senior Associate Leonardo Bafunno and Associates Giorgia Carrozzo, Giacomo Farinati, Nicoletta Brodo, and Cecilia Cancellieri.
Chiomenti
Advised Intesa Sanpaolo – Divisione IMI Corporate & Investment Banking, acting as arranger and placement agent. The team was led by Partner Gianrico Giannesi, with Associates Alessandro Barone, Andrea Cocciolo, Federica Martone, and Edoardo Pettinicchio, alongside Of Counsel Maurizio Fresca and tax specialists Giovanni Massagli and Italo Bove. The UK legal aspects were handled by Counsel Fraser Wood.
BonelliErede
Assisted Ifis NPL Investing as a seller and Banca Ifis as a senior investor. Their legal team was led by Partner Giuseppe Rumi, along with Partner Giovanni Battaglia and Associates Michele Cisolla and Giuseppe Graniglia.
A&O Shearman
Advised Master Gardant and Special Gardant as master and special servicers. The team was led by Partner Pietro Bellone, assisted by Associate Chiara d’Andolfo.
Significance of the Transaction
This securitization represents a strategic move in Italy’s evolving NPL market, reinforcing structured finance mechanisms to manage distressed assets more efficiently. The involvement of key financial institutions and premier legal advisors underscores the increasing sophistication of the Italian NPL sector.
As the economic landscape remains dynamic, the successful execution of Luzzatti Pop NPLs 2024 signals strong investor confidence and regulatory alignment, paving the way for further transactions of this nature.
FAQs
- What is the significance of this securitization?
- The Luzzatti Pop NPLs 2024 transaction highlights the increasing sophistication of Italy’s NPL market and enhances structured finance mechanisms for managing distressed assets.
- Who were the key legal advisors involved?
- Hogan Lovells, Chiomenti, BonelliErede, and A&O Shearman played pivotal roles in advising different parties involved in the securitization.
- What were the tranches of securitization notes issued?
- The securitization was structured into three tranches: Senior Notes (€47.85 million), Mezzanine Notes (€7 million), and Junior Notes (€1.5 million).
- What does this transaction mean for Italy’s NPL market?
- It reinforces investor confidence, regulatory alignment, and structured finance mechanisms, setting a precedent for future NPL transactions in the country.
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