Telereal closes innovative securitization refinancing

Author: Dan Andrews | Published: 28 Nov 2006

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 tenant.

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 acquisition...