Law firm Gide Loyrette Nouel closed its first MBIA-wrapped securitization since the credit crunch started in August. The bonds have been rated triple-A. Gide Loyrette Nouel represented the arrangers Calyon, which was lead arranger, Bank of Scotland and CIC on the €800 million ($1.2 million) whole business securitization for the Fraikin Group, Europe's leading truck leasing and fleet management company. Gide Loyrette Nouel also acted for MBIA. The deal enabled the partial takeout of CVC Capital Partners' bridge acquisition financing from its February 2007 takeover of Fraikin, establishing a five-year, €250 million credit facility to help Fraikin continue to grow its fleet. Monoline wraps used to be a typical feature on these more complex deals but following the credit crunch, banks have lost confidence in monoline insurers. To counter this, Gide Loyrette Nouel and Calyon introduced novel contractual and tax structuring features that has had a positive impact on the 'borrowing base' mechanism with a corresponding decrease in the level of credit enhancement required by the monoline insurer and the rating agencies. "Bringing this deal to a successful conclusion was a 'little miracle," said Patrice Doat, a Gide Loyrette Nouel partner based in London. "This was the first securitization of this type to close since difficulties arose on the markets in the summer of 2007. This was a unique, twelve month marathon deal combining a great number of parties and novel complex contractual and tax structuring. It is an excellent reflection of Gide's crossborder, multi-party capabilities."

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