A green light on the securitization of a 200 million euro portfolio

Mar 19 2003
Price sensitive
Pirelli & C. Real Estate Credit Servicing, a part of the Pirelli & C. Real Estate Group, will manage a multi-originator portfolio of non-performing loans, with a total gross book value of around 200 million euros, which will be transformed into negotiable securities and sold off by mid-April by Dresdner Kleinwort Wasserstein.

The originator of this securitization operation is CFT Finanziaria, a subsidiary of Partecipazioni Real Estate (Pirelli & C. Real Estate Group) and Cassa di Risparmio di Firenze, with equal holdings of 47%, and Cassa di Risparmio di San Miniato, with a holding of 6%. CFT Finanziaria has put together a portfolio of mortgage loans from various small-to-medium-sized banks, approximately 60% of which is made up of loans from the now defunct Credito Fondiario Toscano.

The operation involves the issue of bonds of various types for a total value of 79 million euros, divided as follows:
– a senior issue, for an amount of approximately 50 million euros, that will be offered on the market
– a mezzanine issue, to be underwritten by the arranger Dresdner Kleinwort Wasserstein
– a junior issue, to be underwritten by CFT Finanziaria, the originator of the operation