GMAC Commercial Holding Capital Markets Corp. is planning a unique revolving structure CDO, expected to hit the market sometime this week, sources said. The $370 million transaction, named Capital Trust, will be backed by previously issued B piece and mezzanine tranches of CMBS retained or purchased by GMAC Commercial Mortgage, which it will be able to rotate in and out of the trust.
Morgan Stanley and RFC Securities will underwrite the offering, although it is unclear what each entity's role will be. REIT Capital Trust is the equity holder on the CDO and can add assets to the trust. It is believed that this transaction will be sold directly into a conduit facility, thereby acting as a quasi line of credit for GMACCM.