Tuesday, May 18, 2010

LNR - The Comeback Kid?

FT reports:

...a plan by private equity owner Cerberus Capital management to refinance its debt and to refocus operations could give LNR a new lease on life.


LNR recently bought controlling class-B pieces attached to three large CMBS – LB UBS 2007 C1, BACM 2006 5, and CSMC 2007 C1 – by outbidding incumbent servicer Midland Loan Services, according to the sources and remittance reports. For the USD 3.37bn CSMC 2007 C1 deal alone, 29 loans are in special servicing already with a balance of USD 559m, implying USD 1.4m of servicing fees based on a 25bps rate.


The B pieces of the three deals went up for sale in a late-January auction of six Class-B bonds just before the former owner, Anthracite Capital, filed for bankruptcy. Midland attempted to buy the bonds itself but LNR won out with a bid exceeding USD 2m for all six bonds, speculated a third CMBS investor at the time.

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