NorthStar Realty Finance prices sixth CDO at $450m.NorthStar Realty Finance Corp. yesterday announced that it priced $450 million of a commercial real estate collateralized debt obligation Collateralized Debt Obligation (CDO) A general inclusive term which covers Collateralized Bond Obligations, Collateralized Loan Obligations, and Collateralized Mortgage Obligations, to be issued by two of its subsidiaries--N-Star REL 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 VI Ltd. and N-Star REL CDO VI Corp. The offering is the sixth CDO issuance sponsored by NorthStar Realty and the first completed in 2006. NorthStar Realty's total assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. at December 31, 2005 are approximately $2.8 billion. Fitch Ratings, 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 Standard & Poor's have all assigned investment grade ratings to approximately $348 million, or approximately 77%, of CDO VI's securities, with approximately $272 million rated Aaa/AAA/AAA. The CDO has an expected weighted average life of seven years, and the weighted average interest rate on the $348 million of investment grade securities sold is approximately LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). plus 0.53%. The total collateral value of the portfolio securing CDO VI is expected to be approximately $450 million, with approximately 85% of the collateral identified at the time of the pricing. David T. Hamamoto, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of NorthStar Realty, commented, "We are excited to announce the pricing of our second CDO secured by assets from our real estate lending business, and the fourth CDO issued by the company since our IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. in October 2004. "Not only is this consistent with our strategy of financing all of our business lines through match funded structures, but CDO VI, like CDO IV, has the added benefit of significant re-investment flexibility for the next five years and a structure that will allow us to continue to select the portion of the capital structure that provides the most attractive risk/return profile. "Our consistent issuance in the CDO market, and the strong performance of the underlying collateral of our transactions, has resulted in the ability to significantly decrease the weighted average interest rate on CDOs of this type from approximately LIBOR plus 0.64% on CDO IV to approximately LIBOR plus 0.53% on CDO VI." |
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