PREPS(TM) 2007-1 - Sixth European PREPS(TM) Financing for Mid-sized Businesses Successfully Launched





    --  Seven-year, non-collateralised and subordinated corporate funding

    --  EUR 248 million for 52 companies from Austria, Belgium, Germany,
Italy, Luxembourg, the Netherlands, Switzerland, and the United Kingdom

    --  PREPS(TM) Class A Senior notes rated Aaa/AAA by Moody's and Fitch

    --  First SME Cash CDO programme opens additional markets in Europe

    --  Notes are listed at the Irish Stock Exchange in Dublin, Ireland

    DUBLIN, IRELAND & LONDON & MUNICH, GERMANY & ZUG, SWITZERLAND, March 8
/CNW/ - PREPS(TM) 2007-1, the sixth placement of the unique European financing
platform PREPS(TM) for mid-sized companies has successfully closed and its
final ratings have been published by Moody's and Fitch.

    With a volume of EUR  248 million, this most recent transaction has
further expanded the success of the PREPS(TM) platform within Europe. Since
its inception in spring 2004 by Capital Efficiency Group (CEG), based in Zug,
Switzerland, the platform has provided 328 mezzanine finance arrangements
totalling over EUR  2.1 billion to businesses in eight European countries.

    52 companies based in Austria, Belgium, Germany, Italy, Luxembourg, the
Netherlands, Switzerland and the UK, covering 19 different industries, have
participated in PREPS(TM) 2007-1. These companies are benefiting from a fixed
interest rate of 7.8% (7.82% for Italian companies) plus a step-up of up to 2%
(not covering the UK and Italy).

    PREPS(TM) 2007-1 was structured in three different tranches and placed
exclusively with institutional investors in over 12 countries. The Class A
notes totalling EUR  186 million have a weighted average maturity of 6.8 years
and the Class B notes totalling EUR  35 million of 7.0 years. The legal
maturity date is in 2016. Both tranches are offered with a floating interest
rate. The notes are listed at the Irish Stock Exchange in Dublin.

    JPMorgan and HypoVereinsbank (HVB) were again joint book runners for the
PREPS(TM) 2007-1 Senior notes and placement agents for EUR  27 million of
subordinated unrated Junior notes and for certificates based on the Junior
note.

    A further PREPS(TM) transaction is planned for the current year.

    CEG assumed key advisory functions. The origination was performed by
HypoVereinsbank and Landesbank Berlin in Germany, Bank Austria Creditanstalt
in Austria, Credit Suisse in Switzerland and Italy, Banca Populare di Milano
in Italy, ING in Belgium, Luxembourg and the Netherlands, and Barclays Bank in
the UK.

    For the full text, please see the attached press release.

    MULTIMEDIA AVAILABLE:
http://www.businesswire.com/cgi-bin/mmg.cgi?eid=5350391




For further information:

For further information: Weber-Thedy for Capital Efficiency Group
Wolfgang Weber-Thedy, +41 44 266 15 86 wolfgang.weber-thedy@weber-thedy.com

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CAPITAL EFFICIENCY GROUP

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