Tweet
Could this be a sign the credit crisis could be starting to finally thaw a bit?
3rd UPDATE: BofA To Sell Hilton CMBS, But Without Goldman - WSJ.com
................An unrated commercial mortgage-backed security--the first ever to come to market without a credit firm's imprimatur, market participants said--has garnered a lot of interest among buyers even though its size has shrunk by $1.1 billion and one of the lead managers is no longer marketing the bond.
The floating-rate bond, now being sold solely by Bank of America Large Loan Trust and backed by assets of Hilton Worldwide, has been reduced in size to $1.56 billion, from the original $2.66 billion. When the bond was announced in late October, it was billed as the largest commercial mortgage-backed security since the credit crisis.
The original offering document lists Bank of America Merrill Lynch and Goldman Sachs as joint lead managers but the latest version lists only Merrill Lynch, Pierce, Fenner & Smith Inc. as lead manager.
Industry participants say it is possible Bank of America Corp. (BAC) and Goldman Sachs Group Inc. (GS) didn't agree on the terms of the sale, which is why Goldman is no longer participating. Goldman Sachs declined to comment. Bank of America Merrill Lynch wasn't immediately available for comment.
The bond is a refinancing of some loans that Bank of America and Goldman Sachs made to Hilton. It is backed by debt from the leveraged buyout of the Hilton hotel chain by the Blackstone Group LP (BX) in 2007, at the peak of the real estate bubble.
3rd UPDATE: BofA To Sell Hilton CMBS, But Without Goldman - WSJ.com
................An unrated commercial mortgage-backed security--the first ever to come to market without a credit firm's imprimatur, market participants said--has garnered a lot of interest among buyers even though its size has shrunk by $1.1 billion and one of the lead managers is no longer marketing the bond.
The floating-rate bond, now being sold solely by Bank of America Large Loan Trust and backed by assets of Hilton Worldwide, has been reduced in size to $1.56 billion, from the original $2.66 billion. When the bond was announced in late October, it was billed as the largest commercial mortgage-backed security since the credit crisis.
The original offering document lists Bank of America Merrill Lynch and Goldman Sachs as joint lead managers but the latest version lists only Merrill Lynch, Pierce, Fenner & Smith Inc. as lead manager.
Industry participants say it is possible Bank of America Corp. (BAC) and Goldman Sachs Group Inc. (GS) didn't agree on the terms of the sale, which is why Goldman is no longer participating. Goldman Sachs declined to comment. Bank of America Merrill Lynch wasn't immediately available for comment.
The bond is a refinancing of some loans that Bank of America and Goldman Sachs made to Hilton. It is backed by debt from the leveraged buyout of the Hilton hotel chain by the Blackstone Group LP (BX) in 2007, at the peak of the real estate bubble.
Comment