Four classes of notes issued by Provident CBO I Ltd. were downgraded by Moody's Investors service. The $10M Class B-1 Senior Secured Fixed Rate Notes due December 2010 were downgraded to B1 from Ba3; the $31M Class B-2 Senior Secured Fixed Rate Notes due December 2010 were downgraded to B2 from B1; the $5M Class C-1 Subordinated Floating Rate Notes due December 2010 were downgraded to C from Ca; and the $22M Class C-2 Subordinated Fixed Rate Notes due December 2010 were downgraded to C from Ca. According to Moody's, Provident CBO, a primarily non-IG grade CDO, is currently violating theWeighted Average Rating Test, the Class B Overcollateralization Test and the Class C Overcollateralization Test.
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Both pools have exposures to large dealers, so losses could be more pronounced if one dealer goes bankrupt, while both series have revolving periods, when noteholders will not receive any principal.
3h ago -
The Federal Reserve, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency issued a 30-page guidebook on managing affiliate risks. The report builds on formal guidance issued last year.
5h ago -
In talks with OCC officials, "it became obvious that we would not gain near-term approval given their recent experience with multifamily and CRE positions," FirstSun CEO Neal Arnold says. The companies announced other revisions to their deal, too.
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Subordination provides credit enhancement to the notes, as well as deposits in the reserve and redemption accounts.
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The capital structure features initial exchangeable notes among the class A, mezzanine and B1 notes. The super senior and senior support tranches will repay noteholders on a pro-rata basis.
May 2 -
The company's branches and loan officers will transition to ML Mortgage but operations staff are not part of the deal.
May 2