Cronus Finance Designated Activity Company’s EUR 186 Million Securitization

Hogan Lovells represented Citigroup Global Markets Limited and Piraeus Bank as Arrangers and Joint Lead Managers on the deal. White & Case LLP advised the investor teams from the European Investment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD).

The transaction concerned a 186 million euros securitization by Cronus Finance Designated Activity Company of a portfolio of Greek auto-lease receivables and residual value claims from Greek SME and corporate borrowers.

The receivables were originated by Olympic Commercial & Tourist Enterprises Single Member S.A which is owned by a consortium consisting of Koc Holding (60%) and Avis Budget Group (40%). Olympic trades under the name Avis Budget Greece but its rental car business is outside the scope of the transaction. The transaction includes an 18-month revolving period after closing, subject to early amortisation events. The proceeds are being used to modernise its fleet of vehicles with electric and hybrid vehicles.

Four tranches of Asset Backed Notes were issued under the transaction: €50 million Class A1 Floating Rate Notes due 2034; €43 million Class A2 Fixed Rate Notes due 2034; €37 million Class A3 Fixed Rate Notes due 2034 (subscribed by EIF, EBRD and another private investor); and €56.4 million Class B Subordinated Notes due 2034 (retained by Avis Hellas), with the Class A Notes receiving a BBB+ rating from Fitch and Standard & Poor’s.

The Class A Notes were rated BBB+ by Fitch and S&P and were listed on the Irish Stock Exchange. The transaction was privately placed with a group of European supranational institutions.

The Arrangers and Joint Lead Managers were advised by Hogan Lovells as to English law, Bernistas Law as to Greek law. The originator and investors were each represented by Greek and English counsel.

The Hogan Lovells team was led by Structured Finance partner Julian Craughan (Picture) with support from David Palmer (counsel), Sebastian Oebels (senior associate), Steven Minke (associate). Tax support was provided by partner Philip Harle and Natasha Newey (associate).

The White & Case team that advised on the transaction was led by partner Debashis Dey (Dubai & London) with support from partner Ingrid York (London), counsels Claudio Medeossi and Xuan Jin (both Dubai) and associate Adam Gao (Dubai).

Involved fees earner: Julian Craughan – Hogan Lovells; Philip Harle – Hogan Lovells; Steven Minke – Hogan Lovells; Natasha Newey – Hogan Lovells; Sebastian Oebels – Hogan Lovells; David Palmer – Hogan Lovells; Debashis Dey – White & Case; Adam Gao – White & Case; Xuan Jin – White & Case; Claudio Medeossi – White & Case; Ingrid York – White & Case;

Law Firms: Hogan Lovells; White & Case;

Clients: Citigroup Global Markets Ltd; European Bank for Reconstruction and Development; European Investment Fund; Piraeus Bank S.A.;