NorthStar's $550m CDO.NorthStar Realty Finance Corp. announced the pricing of a $550 million collateralized debt obligation Collateralized Debt Obligation (CDO) A general inclusive term which covers Collateralized Bond Obligations, Collateralized Loan Obligations, and Collateralized Mortgage Obligations, . The offering is the seventh CDO (Collaborative Data Objects) A programming interface from Microsoft for accessing MAPI-based e-mail, calendaring and scheduling servers. Originally called "OLE Messaging" and "Active Messaging," CDO wraps the Enhanced MAPI library into a COM object that provides the issuance sponsored by NorthStar. Aroximately $510.8 million of investment grade-rated notes will be sold in CDO VII, representing approximately 93% of the total capitalization of the CDO. NorthStar will retain all $23.0 million of the Income Notes, and all $16.2 million of the Class E Notes which are BB rated. NS Advisors LLC, a subsidiary of NorthStar, will be the collateral advisor for CDO VII. The CDO is expected to close on or about June 22, 2006. Standard & Poor's, Moody's Investors Service Moody's Investors Service A leading global credit rating, research and risk analysis firm. Moody's Investors Service A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. and Fitch Ratings have given an AAA rating to $442.5 million, or approximately 80.5%, of CDO VII. The CDO has an expected weighted average life of 8.9 years. The AAA rated Class A-1 Notes were priced at a floating rate of LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). plus 0.27%. The weighted average initial yield on $462 million of the notes sold to fund NorthStar's portfolio is LIBOR plus 0.31% and the portfolio is expected to have a weighted average credit rating Weighted Average Credit Rating The weighted average of all the bond credit ratings in a bond fund. The measure gives investors an idea of how risky a fund's bonds are overall. The lower the weighted average credit, rating the riskier the bond fund. of BBB-. The total collateral value of the portfolio is expected to be approximately $550 million and to consist of approximately 72% commercial mortgage-backed securities, approximately 19% debt of real estate investment trusts, approximately 3% commercial real estate CDOs, and approximately 6% other commercial real estate-related debt. |
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion