As per the terms of the deal, Cerberus worked with the company’s bank lenders to effect the recapitalization of the assets through a restructuring of the company’s EUR985m of distressed bank loans, and the infusion of capital in the form of subordinated debt and equity, which will be utilized to pay down debt and make improvements to the assets.
Ben Cairns, receiver of Ernst & Young said, "This is a landmark recapitalization and distressed loan restructuring which is to the mutual benefit of the existing banks, stakeholders of the acquired assets, and the new capital sponsor, Cerberus."
Cerberus senior managing director Lee Millstein said the firm is pleased to work with Speymill Deutsche Immobilien’s banks to lead the recapitalization of the assets and the restructuring of its distressed loans.
"The banks benefit from this transaction by having a large portfolio of non-performing loans converted to performing loans, while stakeholders benefit from Cerberus injecting new capital for improvements and leading the execution of a turn-around of the assets," Millstein said.
The lenders are a consortium of banks led by Netherlands-based NIBC Bank along with German banks HSH Nordbank and Norddeutsche Landesbank (NORD/LB).
Kuna & Co served as Cerberus’ financial advisor on the transaction, while Freshfields Bruckhaus Deringer provided legal counsel to Cerberus.
Cerberus Capital Management has nearly $20bn under management invested in four primary strategies, including distressed securities & assets, control investments, commercial mid-market lending and real estate-related investments.
