German CMBS Refi Gains Momentum

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Deutsche Annington agreed to the final terms for a refinancing of GRAND, a German mutifamily CMBS deal. A group of senior and junior noteholders represent 44% of the total.

According to a Deutsche Bank report published today, the resolution is expected to come by the end of this year. GRAND is the largest European CMBS and a benchmark German multifamily securitization.

It was originally a €5.4 billion ($6.9 billion) CMBS sold in the summer of 2006 at the height of the structured finance boom. The sale was a result of investor Guy Hand's private equity vehicle called Terra Firma Capital Partners purchasing Deutsche Annington and Viterra a year earlier.

The restructuring has been more than one year in the making, but Deutsche Bank analysts said that the terms of the restructure would prove beneficial for all stakeholders, including the residents of the 158,000 units within the securitization. This also covers the noteholders and Deutsche Annington.

Aside from the roughly 44% noteholders which it has agreed to the final terms with, Deutsche Annington has also widened the process to other noteholders to reach the 75% threshold required to secure the terms of the refinancing.

The deadline for gaining a 20 basis point "early bird consent fee" is set for Nov. 15, Deutsche Bank analysts said. After that date, the saving drops to 10 basis points.

At least €10 billion of Jumbo German multifamily CMBS needs refinancing by 2014, according to a Bloomberg report.  

Earlier this month, Deutsche Bank underwrote the €754 million securitization called Florentina CMBS. The new deal is a refinancing of the previous Centaurus Eclipse CMBS offering.

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