Attica Bank SA’s securitization of non-performing loans

Milbank, Tweed, Hadley & McCloy LLP and Bahas, Gramatidis & Partners, advised Attica Bank SA (“Attica bank”), the major Greek non-systemic lender

Milbank, Tweed, Hadley & McCloy LLP and Bahas, Gramatidis & Partners, advised Attica Bank SA (“Attica bank”), the major Greek non-systemic lender, in the sale of a junior note in the principal amount of €339,375,000, issued (together with a senior-tranche note) by a Luxembourg SPV in consideration for Attica bank’s securitised portfolio of non-performing loans (“NPLs”) of approximately €700 million.

The transaction consisted of i) a sale and purchase agreement entered into by Attica bank and PIMCO (acting through the Luxembourg based fund TOCU Europe II Sarl); ii) the drafting of a servicing agreement to be entered into by ABS Metexelixis SA and QQuant Master Servicer SA, a Greek company licensed to manage non-performing exposures by the Bank of Greece; and iii) a series of amendments to the existing securitisation documentation, including, among other, re-tranching of the existing senior and junior notes and issuance of a mezzanine note to comply with European accounting de-recognition regulations.

In this transaction, Rothschild acted as advisor to the Bank. Milbank and Bahas, Gramatidis & Partners acted as legal advisors to the Bank. The completion of this ground-breaking transaction with challenging and complex issues, which benefits the Bank and its shareholders, helps Attica Bank reduce its credit risk exposure and strengthen its capital basis in order to proceed to its next business movements.

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