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General Re Set To Auction Loan Portfolio

04 Feb 2004

General Re-New England Asset Management is poised to sell off a portfolio of approximately $300-340 million in loans.

General Re-New England Asset Management is poised to sell off a portfolio of approximately $300-340 million in loans. The loans are believed to have been investments held by the firm's KZH-Pondview collateralized loan vehicle, which was slated to undergo a refinancing with the help of J.P. Morgan at this time last year (LMW, 2/17). Now, the structure is unwinding, according to market sources.

Gen-Re has approached a number of desks for the sale, slated to go forward on Friday, said market participants. Those familiar with the sale noted that the portfolio would include both par and distressed names, but the specific credits included in the sale could not be determined by press time. "This is definitely a unique approach," said one person familiar with the deal. He added that it is a good time to go forward with the sale due to the current run up in secondary market prices. Calls to officials at Gen-Re were not returned by press time and officials at J.P. Morgan either declined to comment or did not return calls by press time.

04 Feb 2004