LSI 2010 Real Estate Joint Ventures conference materials.pdf
LSI 2010 Real Estate Joint Ventures conference materials.pdf
LSI 2010 Real Estate Joint Ventures conference materials.pdf
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Tracy B. Edgers of Wells Fargo Bank Speaker 3: 10<br />
Sample financing<br />
Multi-borrower pooled transaction<br />
Rating Class Size Subordination Spread Bond Yield<br />
AAA $400,000,000 20.0% 2.00% 5.93%<br />
AA $40,000,000 12.0% 3.57% 7.50%<br />
A $10,000,000 10.0% 4.57% 8.50%<br />
BBB $10,000,000 8.0% 6.07% 10.00%<br />
BBB- $10,000,000 6.0% 8.07% 12.00%<br />
Pooled transactions of<br />
50+ loans offer more AAA<br />
/ lower credit<br />
enhancement.<br />
Breakeven WA coupon is<br />
~6.85%<br />
UR $30,000,000 0.0% 11.07% 15.00%<br />
IO $500,000,000 0.34% 4.23%<br />
$500,000,000 2.92% 6.80%<br />
Assumptions:<br />
Diverse pool of 50+ loans with 10/30 structure<br />
Leverage: 75%<br />
Debt Yield: 11%<br />
10 year Swap Rate: 3.96%<br />
18<br />
Questions<br />
Tracy B. Edgers<br />
Senior Vice President<br />
<strong>Real</strong> <strong>Estate</strong> Banking Group<br />
Wells Fargo Bank<br />
tracy.b.edgers@wellsfargo.com<br />
(206)-292-3431<br />
© <strong>2010</strong> Wells Fargo Bank, N.A. All rights reserved. For public use.<br />
19<br />
Law Seminars International | <strong>Real</strong> <strong>Estate</strong> <strong>Joint</strong> <strong>Ventures</strong> and Funds | 02/08/10 in Seattle, WA
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