White & Case Advises Hoist Finance on Strategic Partnership for Joint NPL Securitisation Investments

Global law firm White & Case LLP has advised Hoist Finance AB (Hoist) on a strategic partnership with alternative investment manager Magnetar Capital (Magnetar) for joint non-performing loan (NPL) portfolio investments on a pan-European level.

The partnership is the next step in Hoist's securitisation programme and is further evidence for securitisation being an integral part of its funding model to effectively mitigate the impact of the NPL backstop and efficiently manage its regulatory capital. The partnership with Magnetar will strengthen Hoist's purchase capabilities and position it for the expected next wave of NPLs across Europe.

The programme is structured to achieve significant risk transfer in accordance with Article 244 of Regulation (EU) No 575/2013 (CRR) and will target unsecured NPL portfolios, for a total investment volume of approximately €1 billion. As co-investor, Magnetar has committed to invest €150 million in mezzanine and junior notes in future securitisations over a 24-month investment period. Hoist will subscribe the senior notes. Any surplus collections from the securitised assets will support the outstanding notes and, upon full repayment, be paid to Hoist under the relevant servicing agreements.

The White & Case team which advised Hoist on the transaction was led by partners Debashis Dey (Dubai/London) and Dennis Heuer (Frankfurt) and included associates Philip Vavalidis (Dubai) and Alexander Kreibich (Frankfurt).

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