Maggese S.r.l.: 30 July 2018

Official Press Release:

Cassa di Risparmio di Asti SpA and the subsidiary Cassa di Risparmio di Biella and Vercelli - Biverbanca SpA sold a portfolio of receivables classified as "non-performing" for a total gross amount of Euro 697 million at the valuation date of 31 December 2017 to Maggese Srl, a securitization vehicle established pursuant to Law 130/99.

The portfolio sold consists of 63% of mortgage loans and the remaining 37% of unsecured loans.

Against the acquisition of the aforementioned receivables, Maggese Srl today issued the following classes of securities pursuant to and for the purposes of art. 5 of the law 130/1999:

• a senior class, rated BBB (low) (sf) / Baa3 (sf) / BBB (sf) by, respectively, the rating agencies DBRS, Moodys and Scope, equal to Euro 170,809,000 and eligible for the " Guarantee on the securitization of bank overdrafts "(so-called "GACS ") pursuant to Decree-Law 18/2016
• a mezzanine class, equal to € 24,401,000 not rated
• a junior class, equal to € 11,420,000 not rated

The total value of the securities issued is equal to 29.63% of the nominal value of the loans sold.

The senior securities have a coupon equal to the Euribor 6 months + 0.5%, the yield of the mezzanine securities is equal to the 6-month Euribor + 6%, while the junior securities are entitled to receive the so-called "variable" remuneration return, in accordance with the applicable payment priority order.

All the securities were underwritten by Cassa di Risparmio di Asti SpA and Cassa di Risparmio di Biella and Vercelli - Biverbanca SpA and the procedural procedure for requesting the GACS for senior securities was activated.

The transfer of mezzanine and junior securities will allow the derecognition of loans by Cassa di Risparmio di Asti SpA and Cassa di Risparmio di Biella and Vercelli - Biverbanca SpA, respectively, following the sale of 95% of mezzanine securities and junior to institutional investors, subject to fulfillment of the requirements set forth in the Supervisory Instructions.

The deconsolidation for accounting purposes of the underlying non-performing loans will make it possible to reduce the ratio of "gross impaired loans / gross loans" of the Group below 12% and the ratio "net impaired loans / net loans" below 6% in line with strategic planning.

The transaction was structured by Mediobanca - Banca di Credito Finanziario SpA, as arranger. Prelios Credit Servicing has been appointed servicer of the securitized portfolio and as part of this role will be responsible for master servicing and special servicing activities throughout the duration of the operation.

BNP Paribas Securitization Services, Milan Branch, KPMG Fides Servizi SpA, Securitization Services SpA and Finanziaria Internazionale Investments SGR SpA also participated in the transaction.


Compare/contrast: 2Worlds S.r.l., Sagrantino Italy S.r.l