CONTIFINANCIAL PARTICIPATES IN $640 MILLION SENIOR/SUBORDINATED CMBS TRANSACTION.NEW YORK--(BUSINESS WIRE)--March 26, 1997--ContiFinancial Corporation (NYSE NYSE See: New York Stock Exchange :CFN CFN Center for Functional Nanomaterials CFN Companhia Ferroviaria do Nordeste (Brazil) CFN Commercial Fueling Network CFN Conselho Federal de Nutricionistas (Brazil) ), through its subsidiary, ContiTrade Services L.L.C., has contributed approximately $220 million of commercial mortgage loans to an approximately $640 million commercial mortgage-backed securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. , completed today, combining collateral provided by Morgan Stanley  To comply with Wikipedia's , the introduction of this article needs a complete rewrite. Mortgage Capital Inc., GMAC GMAC General Motors Acceptance CorporationGMAC Graduate Management Admission Council GMAC Give Me A Call GMAC Genetic Manipulation Advisory Committee GMAC Genetic Modification Advisory Committee (Singapore) GMAC Give Me A Chance Commercial Mortgage Corporation and ContiTrade Services L.L.C. The $220 million of collateral was originated under ContiTrade's ContiMAP commercial real estate mortgage origination program. This issue is the first commercial mortgage securitization in 1997 in which ContiTrade has participated, and is structured using subordinated classes as credit enhancement Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing , as were ContiTrade's two commercial mortgage-backed securitizations in 1996. The Commercial Mortgage Pass-Through Certificates Pass-Through Certificates (PTCs) are instruments that evidence the ownership of two or more Equipment Trust Certificates. In other words, Equipment Trust Certificates may be bundled into a pass-through structure as a means of diversifying the asset pool and/or increasing the size Series 1997-C1 were issued by a trust established by Morgan Stanley Capital I Inc., and include ten publicly-offered classes: -0-
Approximate
Amount Wtd. DCR/Moody's
Class ($ Millions) Coupon Avg. Life Ratings Type
----- ----------- ------ --------- ------- ----
A-1A $ 61.7 6.85% 3.0 yrs. AAA/Aaa Fixed
A-1B 193.0 7.46 7.0 AAA/Aaa Fixed
A-1C 139.5 7.63 9.4 AAA/Aaa Fixed
A-2 38.2 5.91734(1) 5.8 AAA/Aaa Floating
IO-1 601.8(2) 1.42(1) --- AAA/Aaa WAC
IO-2 38.2(2) 2.25(1) --- AAA/Aaa WAC
B 51.3 7.69 9.8 AA-/Aa2 Fixed
C 38.4 7.79 9.8 A-/A2 Fixed
D 35.2 7.85 9.8 BBB-/Baa2 Fixed
E 6.4 7.85 9.9 NR/Baa3 Fixed
(1) For first distribution date. (2) Notional amount The notional amount (or notional principal amount or notional value) on a financial instrument is the nominal or face amount that is used to calculate payments made on that instrument. This amount generally does not change hands and is thus referred to as notional. . "Spreads across all investment-grade classes were our tightest ever," said Steven Wendel, Director of ContiFinancial Services Corporation, the NASD-registered broker-dealer subsidiary of ContiFinancial. "They were also the tightest spreads seen for a commercial real estate mortgage conduit transaction to date. In addition, we were pleased with our subordination levels, which reflect the high quality of mortgage originations from our conduit participants and ContiMAP." The offering was underwritten by Morgan Stanley & Co., Incorporated, with Deutsche Morgan Grenfell Inc. acting as selling agent for certain of the securities classes. The securitization is ContiTrade's third commercial loan securitization in the past nine months. In the aggregate, ContiTrade has contributed approximately $655 million of commercial loans to these three securitizations. For ContiFinancial's fiscal year 1997, ContiTrade is the sixth largest commercial mortgage conduit securitizer, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. publicly available data. ContiFinancial is a consumer and commercial finance company with headquarters in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. . The Company, through ContiMortgage Corporation and other subsidiaries, is a leading originator, purchaser, seller and servicer of home equity loans made to borrowers whose borrowing needs may not be met by traditional financial institutions. In addition, ContiFinancial provides financing, securitization and, through ContiFinancial Services Corporation, bond placement services to originators of a broad range of loans, leases and receivables, including multi-family and other commercial real estate mortgage loans, home equity loans, adjustable rate mortgages This article is about the US mortgage type. For an international perspective, see Variable rate mortgage. An adjustable rate mortgage (ARM) is a mortgage loan where the interest rate on the note is periodically adjusted based on an index. loans, sub-prime and non-prime auto loans, home improvement loans, franchisee loans, time-share loans, and equipment leases. This announcement is not an offer to sell or a solicitation of an offer to buy any of these securities. The offering is made only by the Prospectus Supplement and the related Prospectus, copies of which may be obtained from Morgan Stanley & Co. Incorporated. CONTACT: Jerome M. Perelson Senior Vice President ContiFinancial Corporation 212/207-5402 or Joseph Kist kist n. Variant of cist2. kist Noun Scot & S African a large wooden chest Kist a chest of money, hence, a store or cache of money, 1619. Vice President Edelman Financial 212/704-8239 |
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