Sovereign Bank was in the market late last week with a lease-backed structured deal agented by Salomon Brothers. The deal, structured in two tranches, totaled $310 million.

As last week came to a close, it was apparent that private placements were indeed picking up as market players buzzed in new deals. Sovereign Bank issued a $203 million class A-1 tranche that priced at 350 basis points over Treasurys. The notes were offered with a five-year final maturity and four-year average life and carried a pastor certificate attachment. One source close to the transaction explained, "the lease and trust are secured by manager and then passed through to the investor."

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