Kramer Levin Represents VakifBank in $395 Million Exchange Offer of Asset-Backed Notes

Kramer Levin represented VakifBank, a leading Turkish bank, in an exchange offer of asset-backed notes, which closed on September 23, 2010. Previously in 2006, VB DPR Finance Company, which is the SPV issuer in the VakifBank securitization program, had issued four series of asset-backed notes to holders in the US (under Rule 144A) and to offshore holders (under Reg S). The four series benefited from financial guaranty insurance policies issued by Ambac, FGIC, MBIA and Radian. In the exchange offer, holders of the insured notes were offered new notes of the same tenor, but with an increased coupon and no financial guaranty insurance. The exchange offer closed successfully and approximately $395 million outstanding principal amount of notes were exchanged. Standard Bank Plc was the dealer-manager for the exchange.

The Kramer Levin team that worked on the deal included Banking and Finance partners Laurence Pettit, Kenneth Chin and James A. Grayer; and associate Antonia S. Lee.