$500M CMBS Transaction In The Works

J.P. Morgan Securities Inc. is underwriting a new-issue commercial mortgage-backed security that will be backed by Inland Western Retail Real Estate Trust properties.

The $500 million CMBS transaction – JPMCC 2009-IWST – is not eligible for funding under the Fed's Term Asset-Backed Securities Lending Facility (TALF), a Reuters report says.

According to an Inland Western investor statement issued Tuesday, the real estate investment trust's $625 million, nonrecourse, 10-year loan from JPMorgan Chase Bank NA is secured by a portfolio of 55 retail properties.

"The closing of this nonrecourse secured debt financing is a significant accomplishment, as we have now addressed virtually all of our 2009 maturing debt and a substantial portion of our debt maturing in 2010," commented Steven Grimes, Inland Western's CEO.

The loan includes a two-part $125 million mezzanine debt, Reuters reports, citing an investor term sheet.

Realpoint has been selected to rate the offering. The rating agency was designated as a Nationally Recognized Statistical Ratings Organization in June 2008, as a TALF-approved Rating Agency in May and as an Acceptable Ratings Organization by the National Association of Insurance Commissioners in September.

The rating assignment represents another significant step for Realpoint, the company says.

"Our presence in the new-issue side of the market provides investors with more choices, and will ultimately drive competition based on the quality of the analysis and the transparency of the process provided by the rating agencies," says Realpoint Managing Director Joe Petro.

SOURCES: Reuters, Inland Western, Realpoint


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