There was little pricing activity in the week, although this did nothing to deter new issues from hitting the pipeline.
Underwriters began showcasing Rubino Finance, the 61.5 million ($78.7 million) securitization of contributions owed by the Region of Sicily to some of its craft enterprises. HSBC is lead managing the deal. Rubino Finance is the region's third transaction backed by these types of receivables. The portfolio features one of the largest multi-seller securitizations to date, with more than 5,800 Sicilian small and medium size enterprises.
As part of this transaction, the enterprises sold a total of 70 million of unpaid contributions for capital expenditures purposes owed by the Region of Sicily. The region has irrevocably and unconditionally undertaken to pay the debts in seven fixed annual installments and has adopted expense provisions that record the due amounts in the annual regional budget to facilitate the transaction and payment process.
Dealers began marketing Promise-I Mobility 2006-1, the 2.4 billion synthetic CLO of loans to German SMEs originated by Industriekreditbank (IKB). The transaction is a synthetic securitization of exposures originated by IKB to small- and medium-sized enterprises (SMEs) located primarily in Germany. The transaction structure is based on Kreditanstalt fur Wiederaufbau's (KfW) securitization platform, the Promise program, where KfW acts as an intermediary for the synthetic transfer of the credit risk of the reference portfolio. Promise-I Mobility 2006-1 is the fifth securitization by IKB under this program. Deutsche Bank is managing the deal.
Dealers also began showcasing Rural Pyme 2, the 617.1 million Spanish SME backed by 4,971 loans from 14 rural savings banks. Of the portfolio, 68.7% benefits from a first lien mortgage guaranty, with a current LTV of 52.4%.
Bookrunners announced Starling (Supermarkets) Plc, the GBP850 million ($1.6 billion) CMBS backed by 301 stores, two distribution centers and three ancillary properties rent out to Somerfield Ltd., the fifth largest food retailer in the U.K. The top 10 stores account for 14.3% of the total vacant possession value. In addition to the GBP850 million securitized amount, the loan has a GBP301 million B-note, which brings the day one whole loan indebtedness to GBP1.151 billion. The relationship between the owners of the securitized loan and the B-note is governed by an intercreditor agreement.
Landsdowne No 2 Plc, the 525 million non-conforming RMBS for Start Mortgages Ltd, the Irish specialist lender, was also announced. The Pool comprises 2,582 loans with an LTV of 62.77% and 3.9-month seasoning.
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