JPMorgan Securities is preparing to bring to the market this month the second CDO backed by Attentus Management Group. The $512 million Attentus CDO II will be backed by a mix of trust preferred securities, secured loans and subordinated debt issued by REITs (a little more then 50%), real estate operating companies (about 30%) as well as home builders. The portfolio also has about an 11% bucket for CMBS.
The deal will issue seven classes of floating rate notes and will utilize a sequential pay structure. The rated notes mature December 2041. From December 2008 through June 2016, 35% of excess spread available for distribution to subordinate notes will pay down principal of the E and F class notes outstanding on a pro rata basis. The trustee can also solicit auction bids for the entire portfolio if the senior notes have not been redeemed in full before December 2016, according to a Fitch Ratings presale report.