A spokesman for Bank of America Securities confirms the details of a published report of this transaction.
The spokesman, who asked for anonymity, says the transaction is "a bundling of loans into something best described as a `trust,' backed by assets, which, in this case, are the properties holding the loans. The `trust' or group of loans is then turned into commercial mortgage pass-through certificates, which, like bonds, are rated and sold to investors."
Bank of America Securities, the firm's investment banking unit, is the lead underwriter and book manager of a syndicate which sold the certificates. Other members of the syndicate are Deutsche Bank Securities, Goldman Sachs, Merrill Lynch, and Morgan Stanley.
The collateral encompasses 152 loans on 168 properties. Bank of America initially issued 134 of the loans in the group.
More than a third, 36%, of all of the loans in the group are on retail space; 30.8% on multifamily properties; 21.4% on office buildings; 10.1% on industrial space; and the remaining on a mix of manufactured homes, self-storage facilities and medical office space.
The pass-through certificates are segmented into 10 different classes of securities, each rated individually by Standard & Poor's and Fitch, and each of different total dollars as well as different terms, prices and variable floating rates of interest.
Class A1 certificates, for example, totaling $107.1 million, are for an average three-year term at a floating rate of Swaps, plus 34 basis points, which, at the time of the sale, had a yield of 3.355% interest with a coupon value of 3.366% interest. They carry a AAA rating from S&P and Fitch.
At another end of the spectrum, Class F certificates, totaling $21.5 million, have an average term of 9.84 years, a final spread of Swaps, plus 78 basis points, and a beginning yield of 5.461% interest with a coupon value of 5.487%. They carry an A-minus rating from S&P and Fitch.
The transaction date of the offering begins Sept. 10, and first payment is due Oct. 11, 2002.
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