Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Thursday, 10 June 2010

LNR Pursues Recap, Converting $420Mln of Debt to Equity

Commercial Real Estate Direct Staff Report

LNR Property Corp. said it is pursuing a recapitalization that would allow it to refinance an $868 million senior secured term loan and eliminate a $150 million revolving credit facility.

The recapitalization will entail converting $420 million of debt into equity in the Miami company, the most active special servicer in the CMBS sector. LNR will accomplish that through a $400 million equity rights offering that would be subscribed by existing equity holders and lenders. Certain equity investors would provide a backstop to the offering, agreeing to purchase any equity that isn't acquired.

In addition, Goldman Sachs and BofA Merrill Lynch are leading a $445 million senior secured term loan.

The recapitalization would shore up the company, which earlier this year appeared at risk of filing for bankruptcy, when word got out that it had tapped Lazard Ltd. to advise it on strategic options and Dewey LeBoeuf as counsel.

The company's active special servicing portfolio as of the end of April totaled 1,283 mortgages with a balance of $22.9 billion, or 28.3 percent of all loans in special servicing.

It earned rights to serve as special servicer by investing in the most subordinate classes of CMBS transactions. In the six years through 2008, it bought the B-pieces of 60 transactions with a total balance of $139.4 billion. That amounted to roughly one-quarter of every year's domestic issuance.

It funneled many of...





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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

REITCafe

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