Bloomberg News

Bundesbank Agrees to Sell Lehman Brothers Asset to Lone Star

April 13, 2012

Germany’s Bundesbank agreed to sell Excalibur, a vehicle created by Lehman Brothers Holdings Inc., to a fund managed by Dallas-based Lone Star Funds.

The asset sold has a nominal value of 1.4 billion euros ($1.8 billion), the Frankfurt-based Bundesbank said in an e- mailed statement today. Excalibur had a nominal value of 2.16 billion euros in 2008, which declined to 1.3 billion euros at the end of 2011 after interest and redemption payments, the Bundesbank said on Jan. 19.

Excalibur Funding No. 1, which contains packaged property loans, is one of 33 securities which Lehman Brothers Bankhaus AG, the German arm of the defunct U.S. bank, pledged as collateral to access European Central Bank funding through the Bundesbank in 2008. The Bundesbank said in January it has completed the sale of 28 assets and was looking for investors for the remaining five, among them Excalibur.

“With the sale of Excalibur the Bundesbank is on the right path to be able to complete the sale of Lehman assets by the end of the year,” the central bank said.

The transaction should be competed by the end of April, the Bundesbank said. A spokeswoman for the German central bank declined to comment on the sale price.

To contact the reporters on this story: Jeff Black in Frankfurt at; Jana Randow in Frankfurt at

To contact the editor responsible for this story: Craig Stirling at

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