Hogan Lovells advises J.P. Morgan on a new securitisation originated by Banca Agricola Popolare di Sicilia

A special vehicle has been created for this purpose, called BAPS PMI S.r.l. (SPV). J.P. Morgan provided the SPV with a senior loan of approximately €140 million, while BAPS underwrote the junior tranche, maintaining full exposure to risk and therefore without any accounting derecognition effect. 

The transaction is accompanied by an additional Advised Credit Line that will allow BAPS to more easily carry out any new disposals by replicating the transaction just concluded. Access to the aforementioned credit line, subject to agreement between the parties, could bring the total amount of the transaction up to a maximum of €400 million of financing from J.P. Morgan and will allow BAPS to have a source of liquidity that is always available, flexible and provides for the possibility of being drawn very quickly.

Banca Finint also participated in the transaction as servicer, corporate servicer, calculation agent, representative of the debtholders, and facility agent. BNP Paribas acted as transaction bank and paying agent.

The Hogan Lovells team that advised on the transaction was led by managing partner Italy Patrizio Messina, and included counsel Salvatore Graziadei and associates Leonardo Tripaldi and Giorgia Carrozzo. Head of Tax Italy Serena Pietrosanti and counsel Maria Cristina Conte advised on the tax aspects, while partner Madeleine Horrocks, counsel Russell Green (London) and senior associate Franco Lambiase handled the English law aspects of the transaction.