The CMBS Transaction Has an Aggregate Principal Balance of C$206,000,000
TORONTO, Feb. 3 /CNW/ - Institutional Mortgage Capital Canada Inc.
("IMC") is proud to announce it has completed a private placement of
commercial mortgage backed securities ("CMBS") with an aggregate
principal balance of C$206,000,000. The transaction is the first CMBS
deal issued in Canada since 2007. The deal, entitled Institutional
Mortgage Securities Canada Inc., Series 2011 ("IMSC 2011-1"), is backed
by 16 loans to two of Canada's largest REITS, RioCan REIT and Calloway
REIT. The certificates were issued by Institutional Mortgage
Securities Canada Inc., an affiliate of IMC, with TD Securities as the
Lead Placement Agent.
"IMC is doing its part to help re-open the Canadian CMBS market," said
IMC President and founder, John Ho. "It's unfortunate that the
Canadian market has lagged behind the US when Canadian bonds performed
extraordinarily well even after 2007. Where US CMBS is experiencing
10% defaults, Canadian CMBS has had virtually 0% losses on the $24
billion of CMBS issuance over the past 13 years."
"IMC plans to issue future CMBS deals in 2011 and expand our marketing
to the US and international investors seeking the stability of Canadian
credit," says Mr. Ho. "We think this will expedite the return of the
Canadian CMBS market and make it more efficient this time around."
IMSC 2011-1 is comprised of six investment grade classes and one
weighted average coupon interest only certificate ("WAC IO"). The
certificates were rated AAA to BBB in the DBRS pre-sale report released
on January 21, 2011. The AAA certificates have a 16.75% subordination
level with fixed pass-through rates of 3.690% for the 5 year class and
4.697% for the 10 year class. The AA certificates have a pass through
rate that is the lower of 5.259% and the net weighted average coupon
("NWAC") of the underlying mortgage portfolio while the A, BBB+, and
BBB rated certificates have NWAC pass through rates. All classes below
the 5 year AAA have expected maturities of February 12, 2021, including
the AAA rated WAC IO.
The underlying collateral for IMSC 2011-1 is comprised of 16 loans that
are backed by anchored retail shopping centres owned by RioCan REIT and
Calloway REIT, who are the dominant retail players in the Canadian
landscape. Anchor tenants include national retailers such as Walmart,
Shoppers DrugMart, and Rona. The loans have a 10 year term and a 30
year amortization schedule with fixed rate coupons. They are full
recourse to each borrower, guaranteed by their respective REIT sponsor
and do not allow for borrower prepayments.
About Institutional Mortgage Capital Canada Inc.
Since inception in June 2009, IMC has raised over $320 million in
capital from institutional and high net worth investors for investment
in Canadian CMBS and Canadian commercial mortgage loans. IMC also
established Institutional Mortgage Servicing Canada Inc. ("IMS"), a
fully operational servicing company with over C$750 million of
servicing assignments. While previously working together at Merrill
Lynch, the IMC team built the first commercial mortgage backed lending
program and managed 28 of the 65 Canadian CMBS conduit transactions
from 1997-2007. IMC looks to focus on commercial mortgage origination
and new CMBS issuance in the future.
SOURCE Institutional Mortgage Capital Canada Inc.
For further information:
Contact: Chris Kane
Phone Number: 416-814-2195