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FUND AMERICA INVESTORS TRUST III $220,000,000 COLLATERALIZED MORTGAGE OBLIGATIONS, SERIES 1993-4 RATED BY DUFF & PHELPS

 NEW YORK, Nov. 30 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has rated the following class of Collateralized Mortgage Obligations, Series 1993-4, issued by Fund America Investors Trust III and underwritten by Daiwa Securities America:
 Class Amount Rate D&P Rating
 A $220,000,000 1-Month LIBOR + 1.0 AAA (Cash Flow)
 Class A is entitled to all monthly interest payments and most monthly principal payments on the mortgage and other collateral described below. The collateral interest payments are allocated to the extent available to Class A: 1) to pay interest on the class, 2) to pay interest on deferred interest, 3) to pay down a portion of principal on the class equal to $140 million (called the excess spread reduction component), and 4) generally to pay deferred interest. Prior to February 2004, if the excess spread reduction component is reduced to zero, deferred interest will only be paid to the extent it exceeds 15,000,000. The collateral principal payments are generally allocated to the extent available to Class A: 1) to pay interest on the class and to pay interest on deferred interest to the extent not covered by collateral interest payments, and 2) to pay down a portion of principal on the class equal to $80 million (called the principal reduction component). In February 2004, collateral principal payments will be used to the extent available to pay the principal reduction component, the excess spread reduction component, and deferred interest, in that order. Holders of the trust certificates may terminate the trust on or after October 25, 1998, in which case the Class A bondholders must be paid the sum of their outstanding principal amount, any deferred interest, and accrued interest on such amounts.
 The rating of the bonds reflects D&P's opinion that the Class A bondholders will receive at least $220,000,000 of payments by the Class A maturity date. The rating does not address either the right of bondholders to receive payments on the bonds in excess of an amount equal to the aggregate principal amount of the bonds or whether bondholders will suffer lower than anticipated yields. In addition, the ratings do not address whether the payments on the bonds will take the form of either principal or interest.
 The bonds were issued pursuant to an indenture between Fund America Investors Trust III, as issuer, and State Street Bank and Trust, as trustee. The bonds are secured by 1) mortgage collateral consisting of 10 different classes of REMIC securities issued by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Association (Freddie Mac), 2) the residual portion of Fund America Investors Trust II, Series 1993-3 (issued in October and underwritten by Daiwa), 3) $2,250,000 in a reserve fund held in lieu of substitute collateral consisting of interest-only strips from a Fannie Mae multifamily REMIC (or other acceptable collateral) expected to be delivered to the trust by February 24, 1994, and 4) $162,000,000 face amount of U.S. Treasury STRIPS with a payment date of February 15, 2004. The mortgage collateral consists of variations of principal-only, interest-only, and inverse floating rate securities. Fund America Investors Trust II, Series 1993-3 was collateralized by similar mortgage collateral, U.S. Treasury STRIPS, and private issue residual interest securities.
 The analysis for the ratings primarily focused on prepayments of the mortgage pools underlying the REMIC securities and the subsequent effect on bond cash flows.
 -0- 11/30/93
 /CONTACT: Henry W. Hayssen of Duff & Phelps Credit Rating Co., 212-908-0209/


CO: Fund America Investors Trust III ST: New York IN: FIN SU: RTG

WB -- NY120 -- 8978 11/30/93 19:01 EST
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Date:Nov 30, 1993
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