Securitizability.com

ALLEN & OVERY ADVISES ON CDO FOR AIG-MEZZVEST

International law firm Allen & Overy has advised the AIG-MezzVest group on a e180,000,000 collateralised debt obligation. The deal signed on 17 December 2002 and closed on 18 December 2002. It is intended that the mezzanine fund established by the AIG-MezzVest group will ultimately issue additional debt.

The structure involved a secured loan from the note issuing vehicle to another AIG-MezzVest group company which in turn on-lends the proceeds to its lending vehicles. The equity interest in the structure is provided by the AIG-MezzVest fund itself. The portfolio of investments will largely consist of mezzanine bonds and loans with companies in Western Europe and the U.S. The collateral manager for the structure was AIG-MezzVest Investments Ltd. Collateral acquisitions are made by a subsidiary of the Cayman company, AIG-MezzVest Luxembourg S.à.r.l. but further investment acquiring companies may be established by the AIG-MezzVest group from time to time.

Instructions followed the Allen & Overy's initial involvement in June 2000 when the firm advised in relation to the establishment of, and the initial investments made by, the AIG-MezzVest group.

Paul Flanagan comments:
"The AIG-MezzVest group are leading the way in developing new structures in their markets and it is very rewarding for our team to be a part of that."

Angus Duncan comments:
"The structure involved the combination of secured loan technology from the securitisation markets adapted to complement rating analyses from the CDO markets. I believe that this is the first time such a structure has been used in the Euro market."

The Allen & Overy team was led by ICM partner Angus Duncan and banking partner Paul Flanagan, assisted by associates Binoy Karia, Clare Bennett, Sarah Purcell, Max Mayer and Effie Chao. Luxembourg partner Marc Feider also advised on the deal. Maples and Calder in the Cayman Islands also advised the group companies.

CIBC and Merrill Lynch acted as the arrangers for the transaction. Sarah Smith and Andrew Bliss at Sidley Austin Brown & Wood led the team advising the arrangers.

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