Column Canada Issuer Corporation Announces Notice of Anticipated Substitution of Collateral in respect of $600,000,000 Series A bonds issued in December, 2006 by West Edmonton Mall Property Inc.
TORONTO, Feb. 10, 2014 /CNW/ - Column Canada Issuer Corporation ("Column Canada") announces that West Edmonton Mall Property Inc. ("WEMPI"), the owner of West Edmonton Mall located in Edmonton, Alberta (the "West Edmonton Mall"), informed it that WEMPI has entered into an agency agreement dated February 4, 2014 with, among others, RBC Dominion Securities Inc. in connection with a proposed offering (the "Offering") of first mortgage bonds, a portion of the net proceeds of which will be used to defease the $600,000,000 Series A bonds (collectively, the "Mortgage Bond") issued in December, 2006 by WEMPI assuming that the closing of the Offering proceeds. WEMPI also informed Column Canada that the closing of the Offering is currently scheduled to occur on or about February 13, 2014 and there are a number of conditions precedent to closing that remain outstanding. WEMPI advised Column Canada that while there can be no certainty that those conditions precedent will be satisfied, WEMPI has no reason to believe they will not be satisfied. WEMPI also advised Column Canada that the Defeasance Collateral (as defined below) will be posted in accordance with the applicable trust indenture, as supplemented and amended (collectively, the "Trust Indenture") pursuant to which the Mortgage Bond was issued.
Column Canada completed in December, 2006 a public offering of $600,000,000 Multiclass Pass-Through Certificates, Series 2006-WEM. The Certificates represent undivided co-ownership interests in the Mortgage Bond.
Pursuant to the Trust Indenture, all Defeasance Collateral deposited with the indenture trustee (the "Indenture Trustee") under the Trust Indenture will form part of the mortgaged property and be held by the Indenture Trustee in substitution for the mortgaged property to be discharged and will be applied by the Indenture Trustee, in accordance with the terms of the Trust Indenture, in payment of all principal moneys, interest and premium, if any, due on the Mortgage Bond outstanding under the Trust Indenture from time to time. Column Canada understands from WEMPI that the mortgaged property to be discharged will include the West Edmonton Mall.
"Defeasance Collateral" is generally defined in the Trust Indenture as collateral that, without reinvestment, will provide monies sufficient to pay to the holders of the Mortgage Bond, as and when due, all amounts owing in respect of the principal of, premium (if any) and interest on the Mortgage Bond, and other applicable amounts, and will be direct obligations of, or obligations guaranteed as to full and timely payment of principal and interest by, the Government of Canada or any agency or instrumentality thereof. Upon satisfaction of the applicable requirements of the Trust Indenture regarding defeasance, the security relating to the West Edmonton Mall will be discharged and such mortgaged property will be released to WEMPI, without releasing WEMPI from its obligations under the Trust Indenture and the Mortgage Bond to repay the applicable secured indebtedness (other than the provisions specifically relating to the West Edmonton Mall) in accordance with the terms of the Trust Indenture.
Column Canada Issuer Corporation is a special purpose corporation that purchases various categories of commercial mortgages and other financial assets, including bonds, debentures or other evidences of indebtedness, and issues securities backed by those assets into the private and public capital markets. It is an indirect subsidiary of Column Financial, Inc., the commercial real estate lending subsidiary of Credit Suisse.
Credit Suisse AG
Credit Suisse AG is one of the world's leading financial services providers and is part of the Credit Suisse group of companies (referred to here as "Credit Suisse"). As an integrated bank, Credit Suisse is able to offer clients its expertise in the areas of private banking, investment banking and asset management from a single source. Credit Suisse provides specialist advisory services, comprehensive solutions and innovative products to companies, institutional clients and high net worth private clients worldwide, and also to retail clients in Switzerland. Credit Suisse is headquartered in Zurich and operates in over 50 countries worldwide. The group employs approximately 46,400 people. The registered shares (CSGN) of Credit Suisse's parent company, Credit Suisse Group AG, are listed in Switzerland and, in the form of American Depositary Shares (CS), in New York. Further information about Credit Suisse can be found at www.credit-suisse.com.
SOURCE Column Canada Issuer CorporationFor further information:
Credit Suisse AG
(212) 325-0932 or email@example.com