Nemus II (Arden) amends liquidity facility agreement via Lloyds Bank

By Susanna Moon

Chicago, Nov. 16 – Nemus II (Arden) plc notified holders of several issues of commercial mortgage-backed floating-rate notes due 2020 that amendments were made to its liquidity facility agreement.

The notice was sent to holders of the issuer’s £204,835,000 class A commercial mortgage-backed floating-rate notes due 2020, £16,615,000 class B commercial mortgage-backed floating-rate notes due 2020, £11.26 million class C commercial mortgage-backed floating-rate notes due 2020, £10,175,000 class D commercial mortgage-backed floating-rate notes due 2020, £16,850,000 class E commercial mortgage-backed floating-rate notes due 2020 and £1,135,000 class F commercial mortgage-backed floating-rate notes due 2020.

The issuer entered into a liquidity facility agreement on Dec. 14, 2006 with Lloyds Bank Corporate Markets plc, formerly Lloyds TSB Bank plc.

Before the amendments, the liquidity facility had not provided for a partial repayment and partial cancellation by the issuer of the standby drawing to the liquidity facility provider proportionate to any reduction in the liquidity commitment, according to the notice.

The issuer said it sought to make prepay some of the amount drawn under the liquidity facility agreement and to cancel the liquidity commitment in part so as to ensure that the liquidity commitment and drawn amount is reduced to 6.5% of the principal amount outstanding of the notes.

As a result, the liquidity facility was amended as follows:

• Reduce undrawn part of the liquidity commitment to £2 million; and

• Partial repayment by the issuer to the liquidity facility provider of the standby drawing proportionate to the reduction in the liquidity commitment of an amount equal to £14,831,551.82 and any accrued interest.

“The effect of these amendments will be to reduce the amount of the commitment fee payable in the future by the issuer to the liquidity facility provider in respect of the liquidity commitment,” the release noted.

The reduction to the undrawn amount of the liquidity commitment senior to the payments to noteholders under the priority of payments will result in a larger proportion of available interest receipts being made available to be applied to the interest on the notes than if the amendments are not implemented on the basis that the commitment fee amount that the issuer will be required to pay to the liquidity facility provider senior in the priority of payments to the noteholders will be less than if the amendments are not implemented, the release added.

For information, fax +44 0 20 7398 6325.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.