(Bloomberg) -- Cerberus Capital Management LP and Intrum AB are nearing a deal to buy Spanish bad loans with a face value of around €2 billion ($2.2 billion) from Hoist Finance AB, according to people familiar with the matter.
The agreement is expected to be signed in the coming days, the people said, asking not to be identified because the negotiations are private. It would be one of the first deals for the investment partnership the US investor and the Swedish firm agreed to earlier this year.
Under the terms being discussed, Cerberus would provide 70% of the capital and Intrum the remaining 30%, while management of the assets would be split evenly between the firms, according to the people. Intrum will earn fees on the part of Cerberus’s portfolio that it will manage.
While an agreement is very close, it could still be delayed and there’s no certainty a deal will be signed. Intrum’s plans to file for Chapter 11 bankruptcy protection in the US, however, aren’t expected to derail an accord, said the people.
Officials from Cerberus, Intrum and Hoist declined to comment.
Hoist, a Swedish debt collector and restructuring expert, is a long-term investor in the Spanish credit sector. The sale being negotiated with Cerberus is part of its strategy to regularly sell assets to free up the balance sheet for new deals.
Spain is one of its largest markets by assets. Bloomberg reported in July that Hoist agreed to buy a €270 million portfolio of non-performing mortgages from Banco Santander SA.
For Cerberus, it is at least the second big deal in Spain this year. The US investor previously agreed to buy €6 billion in a Spanish portfolio of bad loans from Zolva Group.
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