July 16 (SeeNews) - Switzerland-based DDM Holding said that together with its joint venture partner, Norway's B2Holding, it has secured third party financing for part of its JV in Croatia acquired in the second quarter of this year.
The share of DDM in the gross proceeds from the financing is some 35 million euro ($39 million), it said in a statement on Monday, adding the financing cost is lower than existing senior secured bond frameworks.
"We are happy to have secured financing on favourable terms, and that the extensive due diligence by the financing provider confirms the portfolio quality," DDM's CEO Henrik Wennerholm was quoted as saying in the statement. "This enables us to invest the proceeds from the financing in future acquisitions."
The loan repayments will be made according to an amortization schedule linked to certain cash flows from the portfolio, the statement added.
In June, DDM said it has completed together with B2Holding the acquisition of a distressed asset portfolio with gross collection value of 800 million euro in Croatia from Austria's HETA Asset Resolution, the 'bad bank' of former Hypo Alpe Adria International.
The portfolio contains secured corporate receivables and has been acquired by a 50/50 joint venture structure of DDM and B2Holding.
DDM said in a separate statement in June that it has entered into an agreement to acquire a distressed asset portfolio of some 200 million euro in gross collection value in Croatia from a leading group in the region.
It did not disclose the name of the seller, saying the portfolio contains secured and unsecured consumer and corporate receivables. The acquisition is expected to close in the third quarter of 2019
DDM is a specialist acquirer and manager of distressed asset portfolios in Southern, Central and Eastern Europe, while B2Holding provides debt solutions for banks and institutional vendors.
($=0.888161 euro)