About Us
Created in 1997, MSF was a leading independent specialty servicing company for the Latin America Healthcare market. The majority shareholder was DVI International Inc. (58.7%), a wholly owned subsidiary of DVI, Inc., a U.S. medical equipment financing firm. Other partners in MSF were IFC (the World Bank private arm, 9.5%), Philadelphia International Equities Inc. (First Union Group) and FMO, the Netherlands development financing agency (see downloadable file below). The Company extended loans and leasing to finance the purchase of diagnostic imaging and other therapeutic medical equipment. On 2005, after the dissolution of the Joint Venture and a management buyout process, MSF expanded its services to include Portfolio Management, Credit Analysis, Collections, Asset Recovery, Due Diligence and Securitizations Servicing to third parties. Since 2012, MSF Latin America has been servicing the last part of its remaining portfolio. All operating offices were closed.
Our Services
Portfolio Management
MSF had been acquiring portfolios of healthcare-related contracts, including mid-size to large leases, term loans and single healthcare transactions. The company also serviced financial partners with the ability to manage portfolio risk and concentration levels. MSF Collections Team had strong knowledge and experience into the Latin America market. MSF objective was to establish long-term relationships with those financial institutions that choose to manage their portfolio and needed a service-oriented company like MSF.
Asset Recovery
MSF had an extended experience in distressed portfolio management. Thanks to the join venture with well known local law firms, MSF offers through arbitration and negotiation processes as an alternative for dispute resolution and execution of written settlements. MSF also offered repossession and sale services of medical equipment and the execution of additional resources (personal and corporate guaranties, mortgages, embargos, etc) in order to maximize the total recovery.
Due Diligence Processes
MSF offered due diligence services with a focus on investment viability. Our due diligence reviews represent lender and investor interests on projects in Latin America. MSF assisted with purchase agreements and the creation of appropriate transaction structures according to the local laws in order to minimize tax consequences.
Securitization
- In August 2000, MSF issued the first Brazilian internationally rated securitization of Domestic Hard Assets. Deutsche Banc Alex Brown joint underwriter with Credit Suisse First Boston.
- The U$D 80 Millions floating rate asset backed note, using a special purpose vehicle, MSF Funding LLC, was backed by cash flows from an existing pool of dollar-denominated equipment leases and loans signed by Brazilian hospitals and clinics. IFC acted as structuring advisor to MSF in this transaction, which is the first securitization of existing onshore Brazilian contracts to be rated above the sovereign ceiling.
- The securitization financed MSF's sales of scanners, ultrasound devices and other medical equipment to Brazil. MSF serves Latin American markets, including Brazil, Argentina, Chile, Colombia, Mexico, Venezuela and Uruguay.
- The deal was the first capital markets transaction carrying an insurance policy from the Multilateral Investment Guarantee Agency (MIGA), also part of the World Bank Group. The insurance protected against transfer and convertibility restrictions and expropriation of funds (see downloadable file below).
- The notes were rated by Moody's Investors Service, Standard and Poor's and Fitch. The class A notes received an A2 rating from Moody's and an A rating from Standard and Poor's and Fitch. The class B notes were rated Baa2 by Moody's and BBB by Standard and Poor's and Fitch. The class C notes received a Ba3 rating from Moody's and a BB rating from Standard and Poor's and Fitch. The three categories of notes, totaling $64 million, were sold to private institutional investors. Beneath them were a single B tranche and an unrated piece, totaling $16M, that MSF retained.
- In January 2001, the Structured Finance International (Euroweek) recognised the transaction as The Best Securitisation of Emerging Market Assets (See downloadable file below).
- MSF Latin America offered services as Servicing Agent in this transaction.