UBS and Banca Caboto, a subsidiary of Milan-based Banca Intesta, are managing the largest securitization of healthcare receivables to be sold in Italy. At E964 million ($1.22 billion), Atlantide Series 3 is backed by payments from Lazio, a region of Italy, to 784 firms who provide healthcare provisions, services and equipment to public hospitals and local healthcare authorities.
Filippo Pingue, a partner at Simmons & Simmons, which advised on the deal, said Atlantide comes to market around once per year. The previous E640 million ($805.3 million) issuance closed in May 2005.James Scott, syndicate head at UBS, added the transaction is comprised of two tranches that have been rated AAA due to monoline wraps from FGIC and XLCA.
The Lazio region has a healthcare deficit, thanks to a shortfall in the differential between what the Italian government provides and Lazio’s needs. Atlantide, the issuer, is comprised of health care suppliers. Alantide bought credits owed by Lazio’s health authorities to the suppliers. The deal securitizes these receivables.
One market official said the issuer wants to monetize the credits now because the health care units may not pay in a timely manner. “Under the deal, the suppliers take the cash and the Lazio region repays instalments over a 10-year period,” he added.