HSBC/Lloyds Plan UK Student Housing CMBS

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HSBC and Lloyds TSB are arranging a £380 million ($580 million) CMBS that is backed by UK student housing, according to a Standard & Poor’s presale report.

The deal is being issued by UNITE PLC, which is an indirect subsidiary of UNITE U.K. Student Accommodation Fund (USAF), the UK's largest specialist student accommodation fund.

This transaction will fund the repayment of the group's existing debt, including repayment of UNITE PLC's commercial mortgage-backed securitization notes.

The issuer will on lend the note proceeds to the borrower (USAF Finance II Ltd.) through an intercompany loan. The loan will be secured on an initial portfolio of 39 student accommodation buildings located in 15 towns and cities throughout England and Scotland.

S&P has assigned a preliminary 'A ' rating to the deal’s fixed-rate notes.  

At closing, the issuer will also enter into a five-year revolving credit facility with Lloyds. The revolving credit facility is expected to be £25 million.



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