US private equity firm Cerberus Capital Management LP said today it had inked a deal to take Isle of Man-based, pan-German residential investor Speymill Deutsche Immobilien Company plc (LON:SDIC) out of receivership.
The buyout firm has collaborated with Spreymill’s bank lenders to restructure the firm’s EUR985m (USD1.26bn) worth of distressed bank loans. The troubled company has received subordinated debt and equity which will be used to pay down its debt and to improve its assets, Cerberus said. The investor expects to finalise the transaction later this week.
Cerberus’ senior managing director, Lee Millstein, believes that all parties benefit from this transaction as the lenders will have a large portfolio of non-performing loans converted to performing ones, while the company will secure a capital injection. According to one of the receivers, Ben Cairns of Ernst & Young LLP, the move represents a “landmark recapitalisation and distressed loan restructuring”.
Spreymill’s lenders are a group of banks led by Dutch NIBC Bank NV as well as German HSH Nordbank AG and Norddeutsche Landesbank. Kuna & Co KG and Freshfields Bruckhaus Deringer LLP consulted Cerberus in this transaction.
New York City-based Cerberus is a private equity investor with nearly USD20bn (EUR15.7bn) under management and offices in the US, Europe and Asia. The firm has been investing in Germany since 2002. In April 2011, Cerberus and a co-investor executed the country’s biggest IPO for the year by listing Berlin-based GSW Immobilien AG (FRA:GIB) on the Frankfurt stock exchange.