Alpha Bank extends deadline for non-binding bids in Galaxy securitization and servicer sale till 3 July according to press reports.
The bank allegedly has decided to extend till 3 July (vs 29 June originally) the deadline for the submission of non-binding bids in the tender for the upcoming twin transaction, ie the Galaxy NPE securitization along with the sale of servicer Cepal.
According to unnamed sources cited by Reuters, at least five US investment firms (namely Cerberus, Pimco, Bain Capital Credit, Apollo and Centerbridge) are considering a bid. 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 securitization (project Cairo).
During the latest conference call, Alpha stressed that, following some pandemic-related delays, Galaxy was set to be re-launched at the beginning of June, after significant preparatory work and continuous interaction with interested parties. The bank hopes to sign a deal, along with the sale of servicer Cepal (having now bought-back a 60% stake previously held by Centerbrigde) in Q4.
However, out of the EUR12bn original Galaxy perimeter, it will now prioritize those modules eligible for Hercules -APS 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). In any case, Alpha’s CAD stands 600bps above 11.5% OCR, while the new CRR could add another 90bps leeway when enacted.