Luzzatti: Prelios Master and Special Servicer for a new multioriginator NPL securitization

Prelios is to act as Master Servicer and, on a co-servicing basis with Fire, as Special Servicer for a new multioriginator NPL securitization promoted by the Luigi Luzzatti company.

A consortium owned by 19 largely minor Italian local cooperative banks – banche popolari – Luigi Luzzatti S.C.p.A. has begun the operational structuring of a new multioriginator NPL securitization, which will see the participation of around twenty banks and bank groups – with other contacts currently underway to involve other bodies – for an overall GBV estimated at between 700 and 750 million euro.

Acting in the role of global coordinator for the securitization, Luzzatti with its own team directly managed the preliminary selection of partners, scouting and portfolio preparation and initial analysis.

The structuring of the operation is being handled with the support of Intesa Sanpaolo – IMI Corporate & Investment Banking Division – as Arranger; Prelios will act as Master Servicer while the role of Special Servicer will be entrusted on a co-servicing basis to Prelios and Fire – Consulting & Credit Management. The Orrick law firm is assisting Luzzatti and the originator banks, while the Chiomenti law firm is legal advisor to the Arranger.

The securitization will be arranged to ensure compatibility with the regulations of the Italian State's distressed loan securitization guarantee, which are due to be renewed, with closing expected to take place in the fourth quarter of 2022. It is part of the new program of initiatives developed by Luzzatti – a consortium of small and medium-sized cooperative banks – to help the shareholder banks achieve their derisking objectives and strengthen its platform of NPE solutions.