EFG Eurobank completed a 2.25 billion ($2.83 billion) securitization of its portfolio of loans to small and medium enterprises (SMEs). This is the bank's first ABS of SME credit and the first deal of its type for Greece. Deutsche Bank and Merrill Lynch arranged the deal.
The deal, dubbed Abaptyxi 2006-1 plc, saw the 750 million tranche retained by EFG price at 17 basis points over Euribor. The 1.8 billion Class A tranche priced at 17 basis points over - one basis point wider than initial guidance; the class B notes priced at 40 basis points over; the Class C tranche priced at 75 basis points; and the Class D notes priced at 250 basis points over. EFG Eurobank said the proceeds would be used to cover part of its expanding financial program. EFG had previously brought over 3.25 billion in securitization paper via its residential mortgage-backed Themelion deals and credit card receivables via the Karta vehicle.
Also last week, underwriters began marketing Dalradian Euro CLO-II, a 350 million European arbitrage CLO. The pool consists of predominantly senior secured loans, 250 million of notes and a 100 million revolving loan facility, which may be drawn in euros, sterling or U.S. dollars. Citigroup is the lead manager on the deal.
Also marketing was Egret Funding CLO 1, the 410 million European leveraged loan CLO from Egret Capital. The target portfolio consists of 82.5% senior secured, 10% second lien and 7.5% mezzanine loans. Societe Generale and HBOS are co-leads on the deal.
Finally, price guidance was offered on Aquilae CLO II Plc, the 300 million leveraged loan CLO from Henderson Global Investors. The triple-A rated eight-year Class A1 tranche has a guidance of 22 to 23 basis points over, the 10-year double-A rated Class B notes was talked at a spread of 38 to 39 basis points, and the 10.2-year Class C tranche was talked at 58 to 60 basis points over. The Class D notes were offered at 140 to 150 basis points over and the Class E tranche at 340 to 350 basis points over.
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