Disposal of Single Ticket Pools
Single Ticket pools represent innovative sale structure capturing benefits of both traditional single tickets & portfolio sales. PwC has analyzed its key feature in more detail and can provide you with valuable insights – from flexibility of perimeter composition and disposal structure, via possibility of show-casing individual names to leveraging on other assets in the pool.
The volume of non-performing loans (NPLs) has been decreasing since 2014 however, volumes are still large in certain European markets. Additionally, the pressure from regulatory bodies remain on banks to tackle distressed assets already in early stages. Regulator focus is extended from NPLs to non-performing exposures (NPE) encompassing additionally Stage 1 and Stage 2 cases, such as for instance unlikely to pay (UTP) / forborne exposure.
As a result, financial institutions are seeking innovative & efficient solutions for tackling NPEs. Addressing large Corporate debtors is seen as particularly important given their sizable contribution to overall NPE stock in majority of CEE banks.
Single tickets are usually defined as mid-sized or larger claims against individual corporate debtor groups. In comparison, a ‘pool of single tickets’ are the obligations of multiple debtor groups which are combined in a pool and offered to the market via the same sale process, with tailor-made sale structure on a case-by-case level. In case of a single ticket pool transaction, it is possible for the investor to acquire individual debtor claims or the full perimeter.
Key benefits of single ticket pools include high level of flexibility in perimeter composition and tailor-made deal structure on an individual object level. Furthermore, it enables sellers to show-case individual debtor’s story and potentially leverage on other assets in the pool.
Additionally, seller can look to optimize overall pricing across the pool by focusing bidder interest on assets where most competitive while also taking into account preferred potential structures. At the same time it allows significant flexibility for the buyer.
In a traditional NPL portfolio sale, the investor universe is mainly concentrated around regional and smaller international NPL investors as well as selected supranationals. However, with a single ticket transactions, Seller, with support of PwC, is able to access an extended investor universe including smaller and larger scale strategic, financial and opportunistic investors as well as brokers with some potentially acting as equity investors.
PwC can assist you throughout the entire deal process, starting from analyzing the debtor’s business, financial performance and credit history which allow you to develop a case story (incl. key challenges and opportunities) and to define the key impact driver for the sale as well as respective indicative value.
Building on our extensive sale process experience and given flexibility of single ticket pool disposal process, we will help seller and buyers to maximize execution certainty as well as minimize risk and post-sale contingencies.
For more information please contact:
Senior Consultant, PwC Austria, FS Deals
Manager, PwC Austria, FS Deals