BackApollo bid for Greensill under threat as Taulia lands funding
Taulia has reached a deal for more than $6 billion of funding from JPMorgan Chase, UniCredit, UBS Group and Banco Bilbao Vizcaya Argentaria
PremiumGreensill Capital’s sale to a company backed by Apollo Global Management Inc. was left in doubt after the beleaguered lender’s fintech partner, Taulia Inc., got credit lines to ensure continued financing.
Taulia has reached a deal for more than $6 billion of funding from JPMorgan Chase & Co., UniCredit SpA, UBS Group AG and Banco Bilbao Vizcaya Argentaria SA, according to a statement from the firm on Wednesday. Bloomberg reported earlier that San Francisco-based Taulia had agreed to the financing line.
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Taulia worked with a number of financial institutions, but counted Greensill --which filed for administration in the U.K. on Monday-- as a major partner for its clients.
“Taulia has been working closely with its funding partners to ensure its formerly Greensill-funded programs have continued access to liquidity," Taulia said in an emailed statement. “The consortium will provide any necessary funding in a timely fashion."
Bloomberg reported on Tuesday that a deal between Greensill and Athene Holding Ltd., an annuity seller backed by Apollo, could collapse if Taulia were to take the clients that were financed by Greensill to other lenders. Greensill’s most-prized business was the supply-chain financing it provided with Taulia, which now has the funding to serve clients with the new partners.
Greensill’s administration filing capped a stunning collapse for the specialty finance firm. Apollo emerged as the sole credible bidder for some of the company’s assets, according to U.K. court filings. The two sides have held talks for at least a week, with Athene offering about $60 million for Greensill’s IT and intellectual property, according to court documents.
Greensill said it was attempting to shake up working-capital finance, a low-margin business dominated by banks like Citigroup Inc. and HSBC Holdings Plc. Questions around the creditworthiness of many of its borrowers led to its fall.
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