World Market Center modifications

Deutsche Bank summarized the modifications nicely today. This originally represented 8.55% of PW10 (WMC1) and 12.28% of PW15 (WMC2).

For WMC 1:

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.
2. The Borrower contributed $11.2mm which brought the loan and required reserve accounts current.
3. 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.

For WMC 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.
2. The Borrower contributed $14.7mm which brought the loan and required reserves current.
3. 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.

Someone at Centerline just had to write their b-piece down (on both deals) from $1 to $0 :-(