For WMC 1:
- The senior loan is split in to a $94.3mm A note and roughly a $106mm hope note. The coupon on the A note remains unchanged at 6.0165% and the hope note does not accrue interest. An immediate write-down of $10.7mm was passed to the Trust.
- The Borrower contributed $11.2mm which brought the loan and required reserve accounts current.
- 80% of the cash flow generated by the property in excess of the amount required to service the new A note will be used to amortize the hope note balance. If the A note is paid off on or before (the prepayment penalty was waived) the scheduled maturity date (July 2015), the hope note can be paid off for $0.2/$1.
- The senior loan is split in to a $73mm A note and a $200mm hope note. The coupon on the A note was reduced 200bps to 4.35% and the hope note does not accrue interest. An immediate write-down of $71.9mm was passed to the Trust.
- The Borrower contributed $14.7mm which brought the loan and required reserves current.
- 80% of the cash flow generated by the property in excess of the amount required to service the new A note will be used to amortize the hope note balance. If the A note is paid off on or before (the prepayment penalty was waived) the scheduled maturity date (January 2017), the hope note can be paid off for $0.2/$1.
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3 comments:
Now C-III, no longer Centerline. These mods make me question what first-lien means if a loan can get modded into a B-note which gets only 80% of NCF.
I'm really curious why the servicer would mod the loans this way...basically letting Related and its new Bain/Basset JV off the hook. I feel like they could have held the JV hostage or exacted more of the upside from the venture...could have added the High Point properties as additional collateral.
The loan on High Point is in another deal (CD 06-CD3, now shorting to class B). Some additional collateral was added by pledging a portion of income from WMC III. It's quite complicated, but making these loans at least partially good helps the majority of the certificate holders by avoiding an extended foreclosure/ REO sale at a high loss severity.
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