May 17, 2016
Weil has advised KKR Credit in relation to an agreement establishing a new platform with Alpha Bank and Eurobank whereby credit and equity exposures, expected to be in the region of €1.2 billion, will be assigned to the management of Pillarstone, a portfolio company of certain funds and accounts managed or advised by KKR Credit.
The platform aims to provide fresh long-term capital and operational expertise to large Greek corporate borrowers helping them stabilize, recover and grow for the benefit of all stakeholders. Alpha Bank and Eurobank will share in the upside as the businesses' performance recovers.
The transaction is seen as pioneering, both in terms of scope and scale, and also has the flexibility to allow other lenders to participate by contributing loan portfolios or adding existing exposures to a specific company to those of the other banks. Subject to final Board approval, the European Bank for Reconstruction and Development is considering co-investing in partnership with KKR and the banks.
Adam Plainer, Head of Weil’s London Business Finance & Restructuring team said, “This is the first platform of its kind in Greece and the structure will pave the way for the management of underperforming exposures in other jurisdictions. It is the sort of innovative transaction which could only have been possible with the market leading expertise KKR brings to the table. We are delighted to be working with them again on such a creative transaction.”
The Weil team was led by Adam Plainer and Head of the London Structured Finance team, Jacky Kelly, working with Private Funds partner Nigel Clark and associates Alex Martin, Delyth Hughes and Peter Boulle.