Mediobanca, Deutsche Bank and JP Morgan were chosen to handle negotiations with funds
The CEO of Novo Banco chose Mediobanca, Deusche Bank and JP Morgan to negotiate the exchange of senior bonds with international funds.
António Ramalho has already chosen Novo Banco‘s financial consultants who will negotiate the senior bond exchange with international funds, ECO discovered through sources in the market. The transition bank’s CEO chose Mediobanca, Deutsche Bank and JP Morgan.
The institution is formally in charge of the senior bonds exchange operation, necessary to close the final agreement for the sale on Novo Banco to the North-American fund Lone Star, since it is Novo Banco that must answer before their bondholders. Of course the Bank of Portugal and the Resolution Fund are directly involved in the operation, but it is Novo Banco which must negotiate the terms of bondholders Liability Management Exercice (LME).
Hiring these investment banks through formal mandates since last Friday — Mediobanca, Deutsche Bank and JP Morgan — was the missing step in terms of formal contacts with funds, particularly Pimco and BlackRock. So far, NB did not make any official confirmation. It is likely, however, that these banks will open negotiations with bondholders by the end of the month, to test the market’s sensitivity to a proposal which is still unknown, although it was announced almost two months ago.
Even so, the proposal made by the Resolution Fund concerning Novo Banco is still not stabilized. The transition bank must decide on the model to be implemented; the goal is to present a prospect to the market during June, in order for the sale operation to be performed.
