Under the terms of the banking industry bailout, Spain cannot use EU cash to compensate junior note
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
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.
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.
This bifurcation among TruPS should translate into a generally positive trend for senior CDO note holders and potentially negative for junior note
holders, as better capitalized banks are likelier to redeem and repay senior notes while weaker banks would be left in the pool to support the junior notes
This extension when coupled with the earlier discounted payoff of the junior note
is a terrific outcome for CapLease and our stockholders.
In the current transaction, HFF marketed the junior note
on behalf of the sellers, a venture comprised of Asian and European insurance companies.
Following the modification, Talmage was engaged as the exclusive advisor to Fillmore Capital Partners, LLC of San Francisco in the successful sale of their junior note
secured by the portfolio.
Fitch notes that to date, P&G has executed redemptions at a slower pace relative to the redemption capacity offered by the hedge fund assets, which may serve to preserve the diversified nature of the portfolio so as to mitigate adverse selection for the junior note
The default model was not re-run for the transactions as the outstanding ratings are either only 'AAAsf' and/or rated junior notes
are present with no subordination; the transactions do not have revolving periods; and a review of pre-determined performance triggers indicates the transactions displays stable asset performance.