A portfolio acquired pre market-crash was re-valued at €70m against outstanding debt of €79m. The loan was split between two different lenders – A €46m and B €33m.
We approached the B lenders and negotiated the acquisition of the B note on behalf of our client for €11m, 33% of face value. We simultaneously introduced and negotiated a full refinance of the A note for 7 years at a floating rate (previously fixed). As a result, the client now had minimum equity of €24m plus cash flow over 7 years of approximately €4m – a return of €28m on an €11m investment.