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CAPITAL MARKETS

Unique CBO Comes To Mart

--Cristina Pittelli


Last week the European securitization market saw a unique collateralized bond obligation receive a provisional rating, while two residential mortgage-backed securities and two asset-backed securities closed.


Centres Hospitaliers Regionaux Universitaires No.1, the €243 million ($321 million) CBO, is backed by payments from 24 French public hospitals. That deal is being prepped for closing by the end of the month. Calyon and Natixis are the underwriters. The deal benefits from the high probability the government will intervene should one of the hospitals face financial difficulties, according to analysts at Moody’s Investors Service analysts. Moody’s rated the deal Aaa.


LeasePlan UK sponsored a £887 million ($1.3 billion) two-tranche deal called Bumper 3, which is backed by auto lease receivables. The portfolio is composed of more than 80,000 leases to corporate, public sector, and small and medium enterprise lessees in England and Wales. Fitch Ratings rated the two classes of notes AAA and A and a third class was not rated. The Royal Bank of Scotland is interest rate swap counterparty and JPMorgan Chase provides a currency swap on the deal, which has been retained.


Also on the asset-backed securities side, a Turkish deal backed by diversified payment rights closed last week. Garanti Diversified Payment Rights Finance Company (2009-A) is rated Baa2 by Moody’s. The portfolio comprises existing and future U.S. dollar, euro and sterling-denominated payment orders to regional bank, Türkiye Garanti Bankasi.


Two deals also closed on the residential mortgage front. Merrill Lynch structured a retained £872 million ($1.2 billion) deal, the first from its Moorgate Funding multi-issuer platform. The deal is backed by a mixture of owner-occupied and buy-to-let properties in the U.K. It was rated AAA by Standard & Poor’s. A €390 million ($517 million) Spanish deal called BANCAJA-BVA VPO 1 also closed last week. The transaction issued four classes of notes rated Aaa, A1, Baa2 and Ba3 by Moody’s. Bancaja is the underwriter. 

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