Rialto Capital Management plans to securitize the recoveries from non-performing loans, performing loans and real-estate owned properties that have an aggregate unpaid principal balance of $319.2 million.
Two classes of notes will be issued which are entitled to principal and interest payments, according to a Kroll Bond Ratings Agency presale report.
KBRA has assigned preliminary ratings of BBB-’ to the class A1 notes; it will not rate the class A-2 notes. Deutsche Bank is the placement agent on the deal.
There are 515 assets in the transaction dubbed COMM 2013-RIAL 4, which are comprised of 151 currently performing loans (60.8% of the portfolio’s total acquisition basis), 350 NPLs(33.2%), and 14 REO properties (6.0%).
Many of the assets are collateralized by multiple pieces of real estate and/or other items, which total to 710 pieces of collateral.
This collateral is comprised of commercial and multifamily real estate properties, residential assets and other non-real estate assets. In March the issuer priced a similar deal called RIAL Series 2013-LT2.