Lone Star is close to signing its second major European debt deal after securing an exclusive position on the €1.8bn (£1.5m) Excalibur portfolio.
The US private equity firm has already bought a €434.3m slice of the portfolio from Bundesbank and is in exclusive talks to buy most of the remainder of the Lehman Brothers-securitised debt by the end of next month.
The Bundesbank took control of a €2.2bn portfolio which is a commercial real estate collateralised debt obligation before the collapse of Lehman Brothers in 2008.
Lone Star is in talks with Citigroup and the Royal Bank of China to finance the deal, although neither the level of debt nor the discount to face value has yet been finalised.
The lenders are the same banks that are financing its purchase of the £900m Project Royal loan portfolio from Lloyds Banking Group which completed before Christmas.
Lone Star declined to comment.
bridget.oconnell@estatesgazette.com
