TVO SOUTHWEST, INC. MULTIFAMILY MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 1994-MF1 RATED BY DUFF & PHELPS CREDIT RATING CO.
CHICAGO, Dec. 19 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned the following ratings to TVO Southwest multifamily mortgage pass-through certificates, Series 1994-MF1: Class Initial Principal Amount Rating Class A-1 $52,000,000 'AA' (Double-A) Class A-2 14,000,000 'A' (Single-A) Class B-1 9,000,000 'BBB' (Triple-B) Class B-2 9,500,000 'BBB-'(Triple-B-Minus) The certificates evidence beneficial ownership interests in a trust fund. The trust fund consists primarily of a mortgage loan originated in November 1994 in the initial principal amount of $84,500,000. The mortgage loan is secured primarily by cross-collateralized, cross defaulted mortgages or deeds of trust representing first liens on nineteen apartment complexes located in three states. The certificates are being placed privately by Donaldson, Lufkin & Jenrette Securities Corporation under Rule 144A of the Securities Act of 1933. Pacific Mutual Life Insurance Company will act as servicer, and LaSalle National Bank will act as trustee of the issue. Each class of certificates will bear interest at the fixed rate of 9.370 percent per annum. The issue creates a senior/subordinated, multi-class mortgage pass-through structure whereby all principal distributions from the underlying mortgage loan will be applied to the senior most outstanding class of certificates until such class of certificates is retired. The net proceeds from the sale of the certificates will be used by the depositor, DLJ Mortgage Acceptance Corp., to purchase the mortgage loan from the originator, Column Financial, Inc. The mortgage loan provides for monthly payments of principal and interest. The loan bears interest at a fixed rate of 9.495 percent per annum. The loan provides for monthly payment of principal, commencing in December 1994, based upon a projected amortization schedule of 360 months. The loan has a scheduled maturity date of November 11, 2004, upon which a balloon payment of the outstanding loan balance will be due. The mortgage loan principal balance will be allocated among the nineteen mortgaged properties for the purposes of making certain calculations. The mortgagors are newly formed single-purpose bankruptcy remote limited partnerships, the general partner of each of which, TVO Southwest, Inc., is a single-purpose bankruptcy remote entity with an independent director. Each of the mortgaged properties will be managed by EPT Management Company, an affiliate of the general partner. D&P Credit Rating analysts inspected each of the mortgaged properties. The properties consist of garden-style multifamily apartment complexes. The properties comprise 5,113 rental units in aggregate and range in size from 78 to 504 units. The properties range in age from 10 to 26 years. Seventeen of the mortgaged properties, representing 77.0 percent of the allocated loan amount, are located in Texas. Six properties representing 32.3 percent of the allocated loan amount are located in the Houston metropolitan area. The largest mortgaged property (by allocated loan balance) is located near Denver, Colorado, and represents 15.8 percent of the allocated loan amount. One property representing 7.3 percent of the allocated loan amount is located in Orlando, Florida. As of September 30, 1994, the reported physical occupancy of the mortgaged properties ranged from 91 percent to 99 percent, with an average (weighted by units) of 95 percent. The ratings represent D&P Credit Rating's quantitative and qualitative analysis of the underlying collateral, as well as the legal and structural characteristics of the issue. The ratings address the likelihood of timely payment of principal and interest to the holders of the certificates, in accordance with the terms of the issue. The ratings do not address the effect on the certificates' yield attributable to prepayments or recoveries on the underlying mortgage loan. -0- 12/19/94 /CONTACT: Kyle J. Floody of Duff & Phelps Credit Rating Co., 312-368-3141/
CO: TVO Southwest, Inc. ST: IN: FIN SU: RTG
LG -- NY039 -- 5845 12/19/94 10:32 EST
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|Date:||Dec 19, 1994|
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