Company hires and sector developments

CMIP acquisition

Investcorp Credit Management US has entered into a definitive interest purchase agreement to acquire a majority ownership interest in CM Investment Partners (CMIP), the investment adviser to CM Finance, through its purchase of the respective equity positions held by certain funds managed by Cyrus Capital Partners and Stifel Venture Corp, and newly issued interests in CMIP. As a result of the transaction, Investcorp will become the majority owner of CMIP, with Michael Mauer and Christopher Jansen - CMIP’s co-cios - together maintaining a minority ownership interest. Cyrus and Stifel will also retain their equity interests in the company, which currently represent a 44.1% interest in total. The transaction, which is expected to close in 3Q19, is subject to customary regulatory requirements and closing conditions.

ReoCo impact weighed

Scope comments that the introduction of a ReoCo in the Belvedere SPV will not, in and of itself, result in a reduction or withdrawal of the current ratings of the Class A notes. Scope adds that the implementation of the ReoCo could be positive for the issuer as the ReoCo can add value to the properties and re-sell them on the market with a profit, therefore increasing recoveries for the issuer, while there are no additional senior costs. Any costs in relation with the ReoCo will be made by the issuer only after the full reimbursement of the rated Class A notes and the Class B notes. The mere fact that the ReoCo bids in an auction could also stimulate other potential buyers to also bid instead of waiting until the next auction. Financing for the ReoCo will be received from the ReoCo quotaholders (the three Bayview Global Opportunities Fund S.C.S. SICAV-RAIF sub-funds) to cover the costs related to auction deposits, the ReoCo’s operativity and the properties’ maintenance.

The maximum timeframe to resell the acquired properties is set to three years after the properties’ acquisition date. If the resale of the purchase property does not happen within this timeframe, the ReoCo shall grant an irrevocable mandate to sell the purchased property to a professional acting in the real estate sector and designated by the representative of the noteholders acting upon instructions of the committee. Bayview Italia has been appointed as property manager to carry out all the technical and operating support and coordination activities and the strategic advisory required to ensure the full operation of ReoCo.