Bear Stearns and Meliorbanca Launch the First Italian Arbitrage CBO: ZOO ABS 1 B.V. EUR 350M European Asset-backed CBO.Business Editors LONDON--(BUSINESS WIRE)--Sept. 19, 2002 Bear Stearns The Bear Stearns Companies, Inc. (NYSE: BSC) is the parent company of Bear, Stearns & Co. Inc., one of the largest global investment banks and securities trading and brokerage firms in the world. International Limited announced that they have launched, on behalf of Meliorbanca S.p.a., ZOO ABS 1 B.V., the first cashflow arbitrage CBO CBO See: Collateralized Bond Obligation. involving an Italian manager. The deal is backed by European mezzanine and subordinated asset backed bonds and includes an innovative super senior cash tranche Tranche One of several related securities offered at the same time. Tranches from the same offering usually have different risk, reward, and/or maturity characteristics. tranche A class of bonds. . The transaction is a repackaging of investments in European senior, mezzanine and subordinated ABS to be managed by the Alternative Investment Department of Meliorbanca S.p.a. Bear Stearns International Limited and Meliorbanca Spa are joint lead managers and Natexis Banque Populaires is a co-manager. The transaction was marketed and sold throughout Europe to a diverse and widespread investor base. Commenting on the transaction, Andy Clapham, head of European Principal and Asset Backed Finance at Bear Stearns, said, "This Italian-managed CBO uses an innovative structure with a super senior cash tranche and was well received by both debt and equity investors. The deal marks yet another 'first' for Bear Stearns in Europe and we anticipate many issues will replicate this structure throughout the Continent." Fabiana Gambarota, head of the Alternative Investment Department at Meliorbanca S.p.a., added, "We are delighted to launch the first deal of this nature managed by an Italian manager as it offers a natural development of our niche market A niche market also known as a target market is a focused, targetable portion (subset) of a market sector. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. products." The deal was issued in 6 tranches rated by S&P and Moody's, 1 unrated tranche of EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 14.0m and two tranches of combination notes rated for the return of amount invested: Tranche Amount Rating Avg Life Pricing ---------------------------------------------------------------------- Tranche A-1E EUR 282.5m AAA/Aaa 6.9 Euribor + 51bps ---------------------------------------------------------------------- Tranche A-2E EUR 15.5m AAA/Aaa 9.0 Euribor + 65bps ---------------------------------------------------------------------- Tranche A-2F EUR 9.5m AAA/Aaa 9.0 5.125% ---------------------------------------------------------------------- Tranche A-3E EUR 20.0m AA/Aa2 9.0 Euribor + 90bps ---------------------------------------------------------------------- Tranche BE EUR 11.5m BBB/Baa2 9.0 Euribor + 250bps ---------------------------------------------------------------------- Tranche BF EUR 6.0m BBB/Baa2 9.0 6.921% ---------------------------------------------------------------------- Tranche C EUR 14.0m Unrated n/a Excess ---------------------------------------------------------------------- Tranche S1 (1) EUR 9.0m AAA/Aaa (3) n/a n/a ---------------------------------------------------------------------- Tranche S2 (2) EUR 7.5.0m BBB/Baa2 (3) n/a n/a ---------------------------------------------------------------------- (1) Each Class S1 Combination Note consists of a Class C1 component and a Class A-2F component. (2) Each Class S2 Combination Note consists of a Class C2 component and a Class BF component. The principal amount of the Class S1 Combination Notes and the Class S2 Combination Notes above is included in the initial principal amount of the respective components of the Class S1 Combination Notes and the Class S2 Combination Notes above. (3) The ratings on the Class S1 and S2 Combination Notes only address the return of the amount invested without any regard to the time value of money. Bear, Stearns International Limited (BSIL BSIL Blue Screen Infinite Loop ) is a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of The Bear Stearns Companies Inc. BSIL's capabilities include investment banking, institutional equities and fixed income sales, trading and research, derivatives, financial futures financial futures Obligations to buy or sell particular positions in financial instruments. The features of financial futures are identical to those of any futures contract except that the asset for delivery is of a financial nature. , foreign exchange and global clearing. Bear, Stearns International Limited is regulated by the FSA FSA Financial Services Authority FSA Food Standards Agency (UK) FSA Farm Service Agency (USDA) FSA Financial Services Agency (Japan) Meliorbanca S.p.a is an Italian investment bank whose activities include capital markets, corporate finance, private banking, asset management and corporate lending activities. Meliorbanca also provides other advisory and financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , whether itself or through a group of specialised subsidiaries and affiliated companies Affiliated Companies A situation that occurs when one company owns a minority interest (less than 50%) in another company. Also refers to companies that are related to each other in some way. Notes: An affiliated company is sometimes referred to as a subsidiary. . |
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