Trez Capital Mortgage Investment Corporation files preliminary prospectus
18.05.12
/CNW/ - Trez Capital Mortgage Investment
Corporation (the "Company") announced today that it has filed a
preliminary prospectus with the securities regulators in each of the
provinces and territories of Canada for a proposed distribution of
Class A Shares (the "Shares") at an issue price of $10.00 per Share.
The objectives of the Company are to acquire and maintain a diversified
portfolio of mortgages on real property in Canada that preserves
capital and generates attractive returns in order to permit the Company
to pay monthly distributions to its shareholders. The initial amount of
the monthly distributions will be approximately $0.0583 per Share
($0.70 per annum) representing an annual cash distribution of 7.0%
based on the $10.00 per Share issue price. Trez Capital Limited
Partnership is the manager of and portfolio advisor to the Company.
The syndicate of agents for the offering is being co-led by RBC Dominion
Securities Inc., Canaccord Genuity Corp. and CIBC World Markets Inc.
and also includes BMO Nesbitt Burns Inc., Scotia Capital Inc., TD
Securities Inc., GMP Securities L.P., Raymond James Ltd., Macquarie
Private Wealth Inc., Desjardins Securities Inc., Mackie Research
Capital Corporation and Manulife Securities Incorporated (the
"Agents").
Source: Sacramento Bee
TEXT-S&P cuts 8 Morgan Stanley Capital 2005-RR6 ratings
18.05.12
OVERVIEW
-- We lowered our ratings on eight classes from Morgan Stanley Capital I
Inc.'s series 2005-RR6, a U.S. CMBS re-REMIC transaction, and removed them
from CreditWatch with negative implications.
-- We affirmed our ratings on classes A-2FX and A-2FL and removed them
from CreditWatch with negative implications, and subsequently withdrew them
following full repayment of the principal balance.
-- The downgrades reflect our analysis of the transaction's liability
structure and the underlying credit characteristics of the collateral using
our criteria for rating global CDOs of pooled structured finance assets.
-- The downgrades also reflect interest shortfalls affecting the
transaction according to the April 24, 2012, trustee report.
-- We lowered our ratings on classes E and F to 'D (sf)' due to interest
shortfalls that we expect will continue for the foreseeable future.
NEW YORK (Standard & Poor's) April 30, 2012--Standard & Poor's Ratings
Services today lowered its ratings on eight classes of commercial
mortgage-backed securities (CMBS) pass-through certificates from Morgan
Stanley Capital I Inc.'s series 2005-RR6 (MSC 2005-RR6), a U.S. CMBS
resecuritized real estate mortgage investment conduit (re-REMIC) transaction,
and removed them from CreditWatch with negative implications. At the same
time, we affirmed our ratings on classes A-2FX and A-2FL and removed them from
CreditWatch with negative implications. Subsequently, we withdrew our ratings
on classes A-2FX and A-2FL after the transaction paid the principal balance in
full (see list).
The downgrades reflect our analysis of the transaction's liability structure
and the credit characteristics of the underlying collateral using our global
collateralized debt obligations (CDOs) of pooled structured finance assets
criteria. We also considered the transaction's exposure to underlying CMBS
collateral that we have downgraded. The downgraded collateral securities are
from eight transactions and total $67.1 million (24.6% of the total asset
balance).
The global CDOs of pooled structured finance assets criteria include revisions
to our assumptions on correlations, recovery rates, and the collateral's
default patterns and timings. The criteria also include supplemental stress
tests (largest obligor default test and largest industry default test) in our
analysis (for more information, see "Global CDOs Of Pooled Structured Finance
Assets: Methodology And Assumptions," published Feb. 21, 2012).
The downgrades also reflect our analysis following interest shortfalls to the
transaction. We also considered the potential for additional classes to
experience interest shortfalls in the future.
According to the April 24, 2012, trustee report, cumulative interest
shortfalls to the transaction totaled $3.6 million affecting class B and the
classes subordinate to it. The interest shortfalls were the result of interest
shortfalls on 12 of the underlying CMBS transactions primarily due to the
master servicer's recovery of prior advances, appraisal subordinate
entitlement reductions (ASERs), servicers' nonrecoverability determinations
for advances, and special servicing fees. We lowered our ratings on classes E
and F to 'D (sf)' due to interest shortfalls that we expect will continue for
the foreseeable future. If the interest shortfalls to MSC 2005-RR6 continue,
we will evaluate the shortfalls and may take further rating actions as we
determine appropriate.
According to the April 24, 2012, trustee report, 58 CMBS classes ($273.1
million, 100%) from 39 distinct transactions issued between 1996 and 2005
collateralize MSC 2005-RR6. Our analysis of MSC 2005-RR6 reflected the
transaction's exposure to the following CMBS certificates that Standard &
Poor's has downgraded:
-- PNC Mortgage Acceptance Corp.'s series 2000-C2 (classes J and K; $14.2
million, 5.2%);
-- Morgan Stanley Capital I Trust 2005-HQ5 (class J; $10.0 million,
3.7%); and
-- LB-UBS Commercial Mortgage Trust 2000-C5 (classes G and F; $9.0
million, 3.3%).
Standard & Poor's will continue to review whether, in its view, the ratings
assigned to the notes remain consistent with the credit enhancement available
to support them and take rating actions as it deems necessary.
STANDARD & POOR'S 17G-7 DISCLOSURE REPORT
SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating
relating to an asset-backed security as defined in the Rule, to include a
description of the representations, warranties and enforcement mechanisms
available to investors and a description of how they differ from the
representations, warranties and enforcement mechanisms in issuances of similar
securities. The Rule applies to in-scope securities initially rated (including
preliminary ratings) on or after Sept. 26, 2011.
If applicable, the Standard & Poor's 17g-7 Disclosure Report included in this
credit rating report is available atRELATED CRITERIA AND RESEARCH
-- Global CDOs Of Pooled Structured Finance Assets: Methodology And
Assumptions, published Feb. 21, 2012.
-- Global Structured Finance Scenario And Sensitivity Analysis: The
Effects Of The Top Five Macroeconomic Factors, published Nov. 4, 2011.
-- Rating U.S. CMBS In The Face Of Interest Shortfalls, published Feb.
23, 2006.
-- General Cash Flow Analytics For CDO Securitizations, published Aug.
25, 2004.
RATINGS LOWERED AND REMOVED FROM CREDITWATCH NEGATIVE
Morgan Stanley Capital I Inc.
Commercial mortgage-backed securities pass-through certificates series 2005-RR6
Rating
Class To From
A-3FX BBB- (sf) A (sf)/Watch Neg
A-3FL BBB- (sf) A (sf)/Watch Neg
A-J B- (sf) BBB (sf)/Watch Neg
B CCC- (sf) BB- (sf)/Watch Neg
C CCC- (sf) B (sf)/Watch Neg
D CCC- (sf) B- (sf)/Watch Neg
E D (sf) CCC- (sf)/Watch Neg
F D (sf) CCC- (sf)/Watch Neg
RATINGS AFFIRMED, REMOVED FROM CREDITWATCH, AND WITHDRAWN
Morgan Stanley Capital I Inc.
Commercial mortgage-backed securities pass-through certificates series 2005-RR6
Rating
Class To Interim From
A-2FX NR A (sf) A (sf)/Watch Neg
A-2FL NR A (sf) A (sf)/Watch Neg
NR-Not rated.
Source: Reuters