PREPS(TM) 2007-1, the sixth placement of the unique European
financing platform PREPS(TM) for mid-sized companies has successfully
closed and its final ratings have been published by Moody's and Fitch.
With a volume of EUR 248 million, this most recent transaction
has further expanded the success of the PREPS(TM) platform within
Europe. Since its inception in spring 2004 by Capital Efficiency Group
(CEG), based in Zug, Switzerland, the platform has provided 328
mezzanine finance arrangements totalling over EUR 2.1 billion to
businesses in eight European countries.
52 companies based in Austria, Belgium, Germany, Italy,
Luxembourg, the Netherlands, Switzerland and the UK, covering 19
different industries, have participated in PREPS(TM) 2007-1. These
companies are benefiting from a fixed interest rate of 7.8% (7.82% for
Italian companies) plus a step-up of up to 2% (not covering the UK and
Italy).
PREPS(TM) 2007-1 was structured in three different tranches and
placed exclusively with institutional investors in over 12 countries.
The Class A notes totalling EUR 186 million have a weighted average
maturity of 6.8 years and the Class B notes totalling EUR 35 million
of 7.0 years. The legal maturity date is in 2016. Both tranches are
offered with a floating interest rate. The notes are listed at the
Irish Stock Exchange in Dublin.
JPMorgan and HypoVereinsbank (HVB) were again joint book runners
for the PREPS(TM) 2007-1 Senior notes and placement agents for EUR 27
million of subordinated unrated Junior notes and for certificates
based on the Junior note.
A further PREPS(TM) transaction is planned for the current year.
CEG assumed key advisory functions. The origination was performed
by HypoVereinsbank and Landesbank Berlin in Germany, Bank Austria
Creditanstalt in Austria, Credit Suisse in Switzerland and Italy,
Banca Populare di Milano in Italy, ING in Belgium, Luxembourg and the
Netherlands, and Barclays Bank in the UK.
For the full text, please see the attached press release.
