Acquisition of a senior secured bilateral loan from a foreign bank seeking to exit its Spanish credit portfolio. The loan was performing and approaching its repayment date. The debtor was an asset backed operating company in the healthcare sector.
This highly opportunistic investment represented an arbitrage opportunity between the expectations of the lender and the investor group. The transaction completed following a restricted auction organised by the lender at a time when confidence in the Spanish economy and a potential recovery was at its lowest. The loan benefited from a strong security collateral consisting of a diversified property portfolio with good operating performance metrics, wide rent cover and attractive rent growth prospects. The position was exited at through the refinancing of the company’s balance sheet.
- Project type: debt purchase
- Location: Spain
- Size: not disclosed