At least five bidders (Cerberus, PIMCO, Bain Capital Credit, Apollo and Centerbridge) reportedly interested in Alpha Bank’s Galaxy securitization and servicer sale.
The deadline for the expression of preliminary interest expires on 29 June. The transaction is structured along the lines of a similar deal recently completed by Eurobank , involving the sale of a majority stake in in-house servicer FPS and a EUR7.5bn NPEs securitisation (project Cairo).
However, out of the EUR12bn original Galaxy perimeter, it will now prioritize those modules eligible for HAPS inclusion (ie enjoying a state guarantee for the retained senior tranche), namely EUR7.6bn secured retail and (possibly) EUR3bn wholesale exposures, leaving unsecured retail/leasing for later. Alpha believes that the capital hit will be below 300bps (vs EUR2bn/350bps guided before for the entire Galaxy).
* Cerberus and Bain declined to comment to Reuters