Wirecard debt that facilitated Softbank investment put up for auction

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2020-07-03 06:02:33

FILE PHOTO: The logo of Wirecard AG, an independent provider of outsourcing and white label solutions for electronic payment transactions, is pictured at its headquarters in Aschheim, near Munich, Germany, July 1, 2020. REUTERS/Andreas Gebert

LONDON (Reuters) – Convertible bonds that were part of a complex transaction that allowed Japan’s Softbank (9434.T ) to buy a stake in now-collapsed payments company Wirecard (WDIG.DE ) and then de-risk the transaction have been put up for sale in an auction.

In a process managed by Credit Suisse, bonds convertible into Wirecard debt with a nominal value of 900 million euros ($1.01 billion) will be sold via an auction set to close on July 8, according to a document seen by Reuters.

Many of Wirecard’s creditors are eager to sell their exposure to the now-insolvent company, as police have raided the German firm’s offices and its administrator has started selling its assets.

The auction should end one of the most complex acquisition structures seen in recent times. Instead of buying a direct stake in Wirecard, Softbank bought bonds that could be repaid with Wirecard shares.