Banco Santer Central Hispano is working on a synthetic balance sheet deal to remove an estimated 1.4 billion in Spanish corporate credits from its balance sheet. Bankers close to the deal said the bank launched the vehicle early in the month and Deutsche Banc Alex. Brown, underwriter for the transaction, is looking to price the notes for the vehicle next week. BSCH will reportedly retain the roughly 26 million equity tranche and the 1.146 billion senior subordinated tranche of the deals structure. Officials at BSCH declined to comment.
The deal has been rated by Moody's Investors Service and comprises five tranches: a 120.4 million Aaa tranche priced at three-month EURIBOR plus 30 basis points; a 39.9 million Aa2 tranche priced at three-month EURIBOR plus 50 basis points; a 31.5 million A1 tranche priced at EURIBOR plus 73 basis points; a 35 million Baa2 trance priced at EURIBOR plus 155 basis points; and a 26.6 million Ba2 tranche priced at EURIBOR plus 385 basis points.