Mobile Menu
Alerts

10 Things You Need To Know About…Structuring a repackaging transaction using a Cayman Islands SPV

Special purpose vehicles (SPVs) are commonly employed as a structuring tool in many cross-border and structured finance transactions, and repackaging transactions are no exception.  The Cayman Islands has a long history of acting as a structuring jurisdiction for repackaging SPVs. The stable political climate, flexible corporate regime and well established, creditor friendly legal system within the Cayman Islands, coupled with the availability of tried and tested bankruptcy remote SPV structures, the option of using segregated portfolio companies and the possibility of listing notes on the Cayman Islands Stock Exchange, make it an ideal choice of jurisdiction for establishing a repackaging vehicle.

  1. Repackaging transactions follow mature and well-established structures which provide a trusted and stable platform for investors

Repackaging transactions, or “Repacks” as they are more commonly known, have been around in one form or another since the early 1980s. Repacks follow well-established, “tried and tested” structures that have demonstrated great resilience through multiple market cycles. Their relative simplicity has been one of their continuing attractions and has helped these structures perform well during periods of economic downturn and market stress, ensuring they continue to be popular with investors.

In its most basic form, a Repack structure involves the establishment of an SPV issuer (the Issuer) to acquire an underlying asset, and this asset is then used as collateral to underwrite the issuance by the Issuer of a new note (or other form of debt security) to an investor. This two-step process allows the structuring bank to change the nature of the security being offered, or “repackage” it, to remove any features that may be undesirable to investors, and/or to include additional features that may make the security more attractive to investors.

 

To continue reading full articles in PDF format:
10 Things You Need To Know About…Structuring a repackaging transaction using a Cayman Islands SPV

 


Barnabas Finnigan
Counsel

Cayman Islands   +1 345 814 7759


Matthew Stocker
Partner, Head of Cayman Corporate Practice

Cayman Islands   +1 345 814 7382


Jarladth Travers
Senior Vice President and Head of Conyers FIG (Cayman) Limited

Cayman Islands   + 1 345 814 7773


Accolades
_

"I enjoy working with them - they are very dependable, reliable and responsive."
- Chambers Global