Mat finish

23 December 2016 By Neil Unmack, Dominic Elliott Follow @unmack1

The U.S. bank led the attempted private rescue of Monte dei Paschi and thus shares some of the blame for its failure. But lost fees hurt it too. Delaying a bailout until after Italy’s referendum also means the career of ex-PM Matteo Renzi may have a second act.

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Banca Monte dei Paschi di Siena said on Dec. 21 it had failed to secure an anchor investor for its offer of new shares.

The share sale was part of a three-part deal to raise new equity, sell a securitisation of bad debt, and convert subordinated bonds into equity.

JPMorgan and Mediobanca were joint global bookrunners of the equity raise, and JPMorgan and Mediobanca were joint arrangers on the bridge loan. JPMorgan was lead bookrunner on the securitisation and bridge financing.

MPS expected to pay costs of 84 million euros for the equity placement, 18 million euros for the debt swap and 69 million euros for the securitisation, according to company statements. It was expecting to pay a 6.5 percent fee for the bridge loan on the securitisation, which would have amounted to 286 million euros had the bridge lasted a year.

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