Prepared Capital Mortgage Financing 2021-FL5, LLC — Moody’s assigns a provisional ranking to at least one class of notes to be issued by Prepared Capital Mortgage Financing 2021-FL5, LLC

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Ranking Motion: Moody’s assigns a provisional ranking to at least one class of notes to be issued by Prepared Capital Mortgage Financing 2021-FL5, LLCGlobal Credit score Analysis – 17 Mar 2021New York, March 17, 2021 — Moody’s Buyers Service (“Moody’s”) has assigned a provisional ranking to at least one class of notes to be issued by Prepared Capital Mortgage Financing 2021-FL5, LLC (the “Issuer”):Cl. A, Assigned (P)Aaa (sf)The Cl. A notes are referred to herein because the “Rated Notes.”RATINGS RATIONALEThe rationale for the ranking is predicated on our methodology and considers all related dangers, notably these related to the CRE CLO’s portfolio and construction.Prepared Capital Mortgage Financing 2021-FL5, LLC is a money stream industrial actual property CLO (“CRE CLO”) that doesn’t have a reinvestment possibility; and 100.0% of the belongings are anticipated to be recognized and closed by the transaction cut-off date. The goal date pool is anticipated to be collateralized by 58 industrial actual property loans within the types of entire loans, one senior participation in a complete mortgage and pari passu participation pursuits on 65 properties. The whole par quantity at closing is anticipated to be $628,868,388. The portfolio of belongings consists of 100.0% floating price obligations with a 4.03% weighted common unfold (WAS). Moreover, 100.0% of the belongings have Libor flooring with a weighted common flooring of 0.88%, and an efficient notice price of 4.93%.Moreover, the transaction gives for a number of criteria-based mortgage modifications that will embody lowering the unfold on belongings by as much as 25 foundation factors and increasing the maturity of loans by as much as two years, topic to a restrict of eight modifications through the lifetime of the transaction.The transaction gives for a companion mortgage acquisition interval of two years, whereby principal proceeds, topic to collateral and transaction efficiency metrics, could also be used to buy as much as $90.0 million of companion notes with respect to sure eligible pari passu participations related to the cut-off date collateral pool. The companion notes are initially within the type of future funding and, as soon as funded, could also be acquired inside this mechanism. After the companion mortgage acquisition interval expires, all principal proceeds will probably be used to pay down the notes so as of seniority.The transaction is anticipated to shut on or about March 31, 2021.The anticipated goal date pool has a Moody’s weighted common loan-to-value (LTV) ratio of 122.9%. Roughly 75.4% of the pool have been acquisition financing loans and 24.6% have been refinancing loans (together with recapitalization). The highest three property sort exposures are multifamily at 61%, workplace at 23% and industrial at 8%.The highest ten belongings (51% of the preliminary mortgage pool) and their respective property sort and Moody’s LTV are as follows: 1) Hudson Valley Portfolio — Multifamily — 129.4%; 2) The Lakes at Windward — Multifamily — 132.8%; 3) Marbletree Residences — Multifamily — 135.9%; 4) Bedford Sq. Residences — Multifamily — 117.5%; 5) Noah Properties Portfolio — Multifamily — 122.3%; 6) Meridian 589 — Workplace — 132.4%; 7) Widespread Greenpoint (CSC Portfolio) — Multifamily — 111.3%; 8) 4130 Cahuenga Boulevard — Workplace — 138.9%; 9) Emerson Pines — Multifamily — 120.2%; 10) Solarium Workplace Constructing — Workplace — 134.9%.Prepared Capital Company (“Prepared Capital”) is the sponsor and can administer the CRE CLO. Prepared Capital Company (previously referred to as Sutherland Asset Administration Company) is a publicly traded REIT integrated in Maryland. As of 31 December 2020, Prepared Capital Company managed roughly $5.4 billion of belongings. That is their fifth Moody’s rated CRE CLO transaction. KeyBank Nationwide Affiliation will act as servicer, particular servicer and advancing agent. They may present servicing to the collateral pursuits through the lifecycle of the transaction. U.S. Financial institution Nationwide Affiliation will function trustee and backup advancing agent on the underlying collateral. Park Bridge Lender Companies LLC will act as working advisor.Along with the Rated Notes, the Issuer will difficulty eight lessons of subordinated notes.The transaction incorporates curiosity and par protection assessments which, if triggered, divert curiosity proceeds to pay down the notes so as of seniority.Moody’s has recognized the next parameters as key indicators of the anticipated loss inside CRE CLO transactions: weighted common ranking issue (WARF), a major measure of credit score high quality with credit score assessments accomplished for all the collateral, weighted common life (WAL), weighted common restoration price (WARR), variety of asset obligors; and pair-wise asset correlation. These parameters are usually modeled as precise parameters for static offers and as covenants for managed offers.For modeling functions, Moody’s used the next base-case assumptions:Par quantity: $628,868,388Number of obligors: 58, HERF: 26Weighted Common Ranking Issue (WARF): 4696Weighted Common Restoration Fee (WARR): 58.81percentWeighted Common Life (WAL): 4.1 yearsWeighted Common Unfold (WAS): 4.03percentWeighted Common Coupon (WAC): n/aPair-wise asset correlation: 35.0percentMethodology Underlying the Ranking Motion:The principal methodology used on this ranking was “Moody’s Method to Ranking SF CDOs” revealed in July 2020 and accessible at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBS_1231934. Alternatively, please see the Ranking Methodologies web page on www.moodys.com for a replica of this technique.Elements That Would Result in an Improve or Downgrade of the Ranking:The efficiency of the Rated Notes is topic to uncertainty. The efficiency of the Rated Notes is delicate to the efficiency of the underlying portfolio, which in flip depends upon financial and credit score circumstances that will change. The administrator’s funding choices and administration of the transaction can even have an effect on the efficiency of the Rated Notes.Along with the set of modeling assumptions above, Moody’s performed an extra sensitivity evaluation, which was a element in figuring out the ranking assigned to the Rated Notes. This sensitivity evaluation contains elevated default chance relative to the base-case.Main sources of assumption uncertainty are the extent of progress within the present macroeconomic atmosphere.The coronavirus pandemic has had a big affect on financial exercise. Though international economies have proven a exceptional diploma of resilience thus far and are returning to progress, the uneven results on particular person companies, sectors and areas will proceed all through 2021 and can endure as a problem to the world’s economies properly past the tip of the 12 months. Whereas persistent virus fears stay the primary threat for a restoration in demand, the economic system will get well quicker if vaccines and additional fiscal and financial coverage responses convey ahead a normalization of exercise. In consequence, there’s a heightened diploma of uncertainty round our forecasts. Our evaluation has thought of the impact on the efficiency of economic actual property, particularly stemming from declines in resort occupancies (notably convention and different group attendance) and declines in foot visitors and gross sales for non-essential retail, from a gradual and unbalanced restoration in US financial exercise.We regard the coronavirus outbreak as a social threat below our ESG framework, given the substantial implications for public well being and security.Additional particulars concerning Moody’s evaluation of this transaction could also be present in a associated pre-sale report, accessible on Moodys.com.REGULATORY DISCLOSURESFor additional specification of Moody’s key ranking assumptions and sensitivity evaluation, see the sections Methodology Assumptions and Sensitivity to Assumptions within the disclosure kind. Moody’s Ranking Symbols and Definitions will be discovered at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.Additional info on the representations and warranties and enforcement mechanisms accessible to traders can be found on http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBS_1271405.The evaluation depends on a Monte Carlo simulation that generates a lot of collateral loss or money stream eventualities, which on common meet key metrics Moody’s determines primarily based on its evaluation of the collateral traits. Moody’s then evaluates every simulated state of affairs utilizing mannequin that replicates the related structural options and cost allocation guidelines of the transaction, to derive losses or funds for every rated instrument. The typical loss a rated instrument incurs in all the simulated collateral loss or money stream eventualities, which Moody’s weights primarily based on its assumptions concerning the probability of occasions in such eventualities truly occurring, leads to the anticipated lack of the rated instrument.Moody’s quantitative evaluation entails an analysis of eventualities that stress elements contributing to sensitivity of rankings and consider the probability of extreme collateral losses or impaired money flows. Moody’s weights the affect on the rated devices primarily based on its assumptions of the probability of the occasions in such eventualities occurring.For rankings issued on a program, collection, class/class of debt or safety this announcement gives sure regulatory disclosures in relation to every ranking of a subsequently issued bond or notice of the identical collection, class/class of debt, safety or pursuant to a program for which the rankings are derived completely from present rankings in accordance with Moody’s ranking practices. For rankings issued on a help supplier, this announcement gives sure regulatory disclosures in relation to the credit standing motion on the help supplier and in relation to every explicit credit standing motion for securities that derive their credit score rankings from the help supplier’s credit standing. For provisional rankings, this announcement gives sure regulatory disclosures in relation to the provisional ranking assigned, and in relation to a definitive ranking that could be assigned subsequent to the ultimate issuance of the debt, in every case the place the transaction construction and phrases haven’t modified previous to the task of the definitive ranking in a fashion that will have affected the ranking. For additional info please see the rankings tab on the issuer/entity web page for the respective issuer on www.moodys.com.For any affected securities or rated entities receiving direct credit score help from the first entity(ies) of this credit standing motion, and whose rankings might change because of this credit standing motion, the related regulatory disclosures will probably be these of the guarantor entity. Exceptions to this strategy exist for the next disclosures, if relevant to jurisdiction: Ancillary Companies, Disclosure to rated entity, Disclosure from rated entity.The ranking has been disclosed to the rated entity or its designated agent (s) and issued with no modification ensuing from that disclosure.This rankings is solicited. Please confer with Moody’s Coverage for Designating and Assigning Unsolicited Credit score Rankings accessible on its web site www.moodys.com.Regulatory disclosures contained on this press launch apply to the credit standing and, if relevant, the associated ranking outlook or ranking evaluate.Moody’s common rules for assessing environmental, social and governance (ESG) dangers in our credit score evaluation will be discovered at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1243406.At the very least one ESG consideration was materials to the credit standing motion(s) introduced and described above.The World Scale Credit score Ranking on this Credit score Ranking Announcement was issued by certainly one of Moody’s associates exterior the EU and is endorsed by Moody’s Deutschland GmbH, An der Welle 5, Frankfurt am Fundamental 60322, Germany, in accordance with Artwork.4 paragraph 3 of the Regulation (EC) No 1060/2009 on Credit score Ranking Businesses. Additional info on the EU endorsement standing and on the Moody’s workplace that issued the credit standing is on the market on www.moodys.com.The World Scale Credit score Ranking on this Credit score Ranking Announcement was issued by certainly one of Moody’s associates exterior the UK and is endorsed by Moody’s Buyers Service Restricted, One Canada Sq., Canary Wharf, London E14 5FA below the regulation relevant to credit standing businesses within the UK. Additional info on the UK endorsement standing and on the Moody’s workplace that issued the credit standing is on the market on www.moodys.com.Please see www.moodys.com for any updates on adjustments to the lead ranking analyst and to the Moody’s authorized entity that has issued the ranking.Please see the rankings tab on the issuer/entity web page on www.moodys.com for extra regulatory disclosures for every credit standing. Tulay Sangiray Analyst Structured Finance Group Moody’s Buyers Service, Inc. 250 Greenwich Avenue New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Consumer Service: 1 212 553 1653 Deryk Meherik Senior Vice President/Supervisor Structured Finance Group JOURNALISTS: 1 212 553 0376 Consumer Service: 1 212 553 1653 Releasing Workplace: Moody’s Buyers Service, Inc. 250 Greenwich Avenue New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Consumer Service: 1 212 553 1653 © 2021 Moody’s Company, Moody’s Buyers Service, Inc., Moody’s Analytics, Inc. and/or their licensors and associates (collectively, “MOODY’S”). All rights reserved.CREDIT RATINGS ISSUED BY MOODY’S CREDIT RATINGS AFFILIATES ARE THEIR CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY’S (COLLECTIVELY, “PUBLICATIONS”) MAY INCLUDE SUCH CURRENT OPINIONS. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE APPLICABLE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS (“ASSESSMENTS”), AND OTHER OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.All info contained herein is obtained by MOODY’S from sources believed by it to be correct and dependable. Due to the opportunity of human or mechanical error in addition to different elements, nevertheless, all info contained herein is offered “AS IS” with out guarantee of any type. MOODY’S adopts all crucial measures in order that the data it makes use of in assigning a credit standing is of enough high quality and from sources MOODY’S considers to be dependable together with, when applicable, unbiased third-party sources. Nonetheless, MOODY’S shouldn’t be an auditor and can’t in each occasion independently confirm or validate info obtained within the ranking course of or in getting ready its Publications.To the extent permitted by regulation, MOODY’S and its administrators, officers, staff, brokers, representatives, licensors and suppliers disclaim legal responsibility to any individual or entity for any oblique, particular, consequential, or incidental losses or damages by any means arising from or in reference to the data contained herein or the usage of or lack of ability to make use of any such info, even when MOODY’S or any of its administrators, officers, staff, brokers, representatives, licensors or suppliers is suggested upfront of the opportunity of such losses or damages, together with however not restricted to: (a) any lack of current or potential income or (b) any loss or harm arising the place the related monetary instrument shouldn’t be the topic of a specific credit standing assigned by MOODY’S.To the extent permitted by regulation, MOODY’S and its administrators, officers, staff, brokers, representatives, licensors and suppliers disclaim legal responsibility for any direct or compensatory losses or damages triggered to any individual or entity, together with however not restricted to by any negligence (however excluding fraud, willful misconduct or some other sort of legal responsibility that, for the avoidance of doubt, by regulation can’t be excluded) on the a part of, or any contingency inside or past the management of, MOODY’S or any of its administrators, officers, staff, brokers, representatives, licensors or suppliers, arising from or in reference to the data contained herein or the usage of or lack of ability to make use of any such info.NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.Moody’s Buyers Service, Inc., a wholly-owned credit standing company subsidiary of Moody’s Company (“MCO”), hereby discloses that almost all issuers of debt securities (together with company and municipal bonds, debentures, notes and industrial paper) and most popular inventory rated by Moody’s Buyers Service, Inc. have, previous to task of any credit standing, agreed to pay to Moody’s Buyers Service, Inc. for credit score rankings opinions and providers rendered by it charges starting from $1,000 to roughly $5,000,000. MCO and Moody’s Buyers Service additionally keep insurance policies and procedures to handle the independence of Moody’s Buyers Service credit score rankings and credit standing processes. Data concerning sure affiliations that will exist between administrators of MCO and rated entities, and between entities who maintain credit score rankings from Moody’s Buyers Service and have additionally publicly reported to the SEC an possession curiosity in MCO of greater than 5%, is posted yearly at www.moodys.com below the heading “Investor Relations — Company Governance — Director and Shareholder Affiliation Coverage.”Extra phrases for Australia solely: Any publication into Australia of this doc is pursuant to the Australian Monetary Companies License of MOODY’S affiliate, Moody’s Buyers Service Pty Restricted ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as relevant). This doc is meant to be offered solely to “wholesale purchasers” inside the which means of part 761G of the Firms Act 2001. By persevering with to entry this doc from inside Australia, you symbolize to MOODY’S that you’re, or are accessing the doc as a consultant of, a “wholesale consumer” and that neither you nor the entity you symbolize will instantly or not directly disseminate this doc or its contents to “retail purchasers” inside the which means of part 761G of the Firms Act 2001. MOODY’S credit standing is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the fairness securities of the issuer or any type of safety that’s accessible to retail traders.Extra phrases for Japan solely: Moody’s Japan Okay.Okay. (“MJKK”) is a wholly-owned credit standing company subsidiary of Moody’s Group Japan G.Okay., which is wholly-owned by Moody’s Abroad Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan Okay.Okay. (“MSFJ”) is a wholly-owned credit standing company subsidiary of MJKK. MSFJ shouldn’t be a Nationally Acknowledged Statistical Ranking Group (“NRSRO”). Due to this fact, credit score rankings assigned by MSFJ are Non-NRSRO Credit score Rankings. Non-NRSRO Credit score Rankings are assigned by an entity that isn’t a NRSRO and, consequently, the rated obligation is not going to qualify for sure forms of remedy below U.S. legal guidelines. MJKK and MSFJ are credit standing businesses registered with the Japan Monetary Companies Company and their registration numbers are FSA Commissioner (Rankings) No. 2 and three respectively.MJKK or MSFJ (as relevant) hereby disclose that almost all issuers of debt securities (together with company and municipal bonds, debentures, notes and industrial paper) and most popular inventory rated by MJKK or MSFJ (as relevant) have, previous to task of any credit standing, agreed to pay to MJKK or MSFJ (as relevant) for credit score rankings opinions and providers rendered by it charges starting from JPY125,000 to roughly JPY550,000,000.MJKK and MSFJ additionally keep insurance policies and procedures to handle Japanese regulatory necessities. ​

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