The refinancing of Telereal's commercial mortgage-backed
securitization uses four structural enhancements to maximise
the credit benefits of having British Telecom as a primary
The £700 million deal ($1.3 billion) uses forward
purchase notes, zero coupon bonds, an innovative intercompany
facility, and a credit wrap to obtain ratings recognition of
the current and future value in Telereal's business.
The original securitization financed the 2001