Case study

New Issue: Phebus Finance S.A. 

by Professor Ian H. Giddy
New York University

New Issue: Phebus Finance S.A.
Eur275 million Euro commercial paper program

Ratings Detail
New Rating
EURO CP prog auth amt EUR275 mil
Closing date: Dec. 1, 1999
Transaction Summary

Collateral: FCC units issued by FCC Securifact and rated AAA.
Underwriter: Credit Commercial de France.
Seller: FCC Securifact.
Servicer: Credit Commercial de France.
Adviser: CCF Charterhouse and Titrisation et Finance Internationales.
Liquidity Agent: Credit Commercial de France.
Manager: Titrisation et Finance Internationales.

Commercial Paper Issuance

Pursuant to the management agreement, TFI, as manager of Phebus, is responsible for arranging commercial paper issuance and verifying, with Credit Commercial de France (CCF) as liquidity agent, that Phebus has entered into liquidity facilities with eligible counterparties to receive amounts sufficient to redeem the issued and outstanding commercial paper at maturity.

Before the commercial paper issuance, the manager shall also ensure that:    

The face amount of commercial paper issued is limited to the refinancing need; and the refinancing need is calculated three days before the rollover date and is equal to the FCC units being purchased by Phebus (newly issued by FCC Securifact and/or resold by the liquidity providers), plus maturing commercial paper on such payment date, minus principal and interest on the FCC units effectively paid to Phebus.  


The currently issued FCC Securifact units represent a portfolio of trade receivables issued by SFF and one of its clients, ISA France. FCC is composed of two compartments dedicated to SFF and ISA France, with similar characteristics such as the payment date on the FCC units. The total amount of senior units issued by the two compartments is limited to a maximum amount of French franc 1.7 billion, or Eur259.2 million, and has been fully subscribed by Phebus. Interest is payable quarterly on the FCC units of each compartment, and reflects the cost of funding on the commercial paper market and/or on liquidity drawings. FCC is managed by Gestion et Titrisation Internationales.

The FCC units' final maturity occurs in August 2005. FCC Securifact senior units are rated 'AAA' by Standard & Poor's based on a first-demand guarantee delivered by AGF IART, on a reserve account mechanism and on the soundness of the structure.    

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Copyright ©2005  Ian Giddy. All rights reserved.