"They are basically having the same discussions as we had a year ago, which is likely to see the owner put in a tiny amount of equity and wiping out the least secure debt," said one of Wind Hellas's former
junior note holders.
The effect on the
junior note holders is that principal payments are delayed until more senior note holders are fully paid.
As a factual matter, in each of the foregoing cases, if the junior lienholder had withheld consent to the sale of the property by the original borrower and had instead triggered a foreclosure, the foreclosure by the first deed of trust would have wiped out the lien of the second deed of trust, and there would have been little or nothing left to satisfy the deficiency owed on the
junior note.
It has already completed one transaction this year; the sale of a $116 million
junior note within a $369 million securitisation of mainly Dublin offices and retail assets to Northwood Investors, and has recently announced plans to sell two portfolios worth over $1.37 billion.
Under the terms of the banking industry bailout, Spain cannot use EU cash to compensate
junior note holders.
Savanna will retain the $76.7 million
junior note, with the $81 million senior note piece sold in this transaction to a separate account managed by Apollo Global Real Estate.
Credit enhancement is comprised of overcollateralization, subordination of
junior note classes, a cash reserve account and excess spread.
The asset model for this annual review was not run, as the transactions do not have revolving periods, the outstanding ratings are only 'AAAsf' and a rated
junior note is present with no subordination, the review of pre-determined performance triggers indicates the transactions display stable asset performance and there have been no significant changes to transaction structures.
Asset Analysis: The asset model for this annual review was not run, as the transactions do not have revolving periods, the outstanding ratings are only 'AAAsf' and a rated
junior note is present with no subordination, the review of pre-determined performance triggers indicates the transactions display stable asset performance and there have been no significant changes to transaction structures.
Credit enhancement for each transaction consists of overcollateralization, subordination of
junior notes, cash reserves, and excess spread.
The company said this SPV will fund 95% of the net purchase price of the receivables via senior notes and the remaining 5% via issuance of
junior notes.
GLM US CLO 4 issued USD 516 million of AAA-rated senior notes with a weighted average coupon of L+1.33%, along with lower rated senior, mezzanine and
junior notes, for an overall weighted average coupon of L+1.90%.
