Asset Backed Securities. Belenus Securities Plc Essay

1397 words - 6 pages

1. What are the main features of the underlying assets?The underlying assets is a pool of 427 fixed (71%) - and floating (29%) -rate loans which are generally secured by diverse commercial real estate property types with an unpaid principal balance of Ffr 1.5 billion.Features :Loan diversity : principal balances ranges from Ffr 34.000 to Ffr 213 million with an weighted average amount owed of Ffr 3.6 million.Property Type : The pool is fairly diversified.44% Offices / 25% Retail / 12% Hotels / 7% Multifamily / 11% Industrial & WarehouseGeographic Concentration : Most of the assets mainly concentrated in Paris and the suburbs.Most French portfolios of the same size are believed to have a significant concentration in Paris, the subordination levels are not affected.Collateral Type is diversified :+/- 81% of loans by principal balance are secured by a mortgage lien on real property,9.4% are secured by a pledge of share from a commercial real estate company4.3% are secured by a third-party guaranty or pledge of business assetsMaturity Dates are diversified :Ranging from 2 months to 191 monthsReal estate quality ranged from A (excellent) through C (Average) to E (Poor) :0,2 % A / 54,6% B / 34,7% C / 12,6% DLocation : Properties located in France : 32% in Paris : 33% in the Paris Suburbs / 35% in the regionsOffices : usually well locatedRetail : The centres are anchored by supermarkets.Hotels : In Canes and ParisMultifamily : Within Paris and the suburbs, a mix of eastern and western locations.2. What can you find about the originator of the commercial mortgages ?Originator : Banque SOFAL.SOFAL is a subsidiary of Union Industrielle de Credit (UIC), a real estate and banking subsidiary of Group Assurances Nationales (GAN), the government-owned insurance and banking conglomerate.The loans were originated by SOFAL and sold to Belenus, an Irish special-purpose vehicle that is the issuer of the notes and the subordinated notes.3. Who is the issuer of the ABS, and where is the issuer located? Why?Issuer : Belenus Securities PLC, a public limited company incorporated under the laws of Ireland.Belenus is located in Ireland and is owned by persons independent of SOFAL and is not a French corporation subject to the jurisdiction of the laws and courts of France.Why? To avoid consolidation ( SOFAL and Belenus ) in a bankruptcy proceeding.4. Who is the servicer of the ongoing cash flows ?Servicer : Banque SOFALSOFAL , as servicer, will provide Interest Advancing :o In the event a borrower fails to remit interest payments or the asset is converted to its collateral security.o Will not be allocated to pay interest to the first loss piece (class F) of that portion of any note with an allocated realized loss or appraisal reduction.LaSalle, backed by ABN AMRO, will provide interest advances in the event SOFAL fails to pay required advances and will undertake to provide a replacement servicer or servicers if SOFAL becomes unable to act as servicer.5. What are the...

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