CDP Capital completes $370.6 million offering

Date Closed: 10/30/2003

Value: $370.6 million

N-45° First CMBS Issuer Corp., a member company of CDP Capital – Mortgages, completed, on October 30, 2003, an offering of commercial mortgage-backed securities. The value of the offering is $370.6 million. CDP Capital – Real Estate Advisory Inc. was responsible for the financial engineering of the transaction. Standard&Poor’s, Fitch and Dominion Bond Rating Services Limited (DBRS) required a subordination level of 26.15 per cent to support the AAA rated bonds. All the classes of bonds were offered in the public bond market. The AAA rated class A-1 and A-2 bonds were sold to more than 25 institutional investors across Canada. The AA and A rated bonds were sold in the retail market. CDP Capital – Mortgages retained the BBB rated and IO class of bonds. The N-45° series 2003-2 bonds are backed by two mortgage loans on a single real estate asset, Bankers Hall Complex in Calgary, owned by subsidiaries of Brookfield Properties Corp. and British Columbia Investment Management Corp. The loan to value ratio is 60.6 per cent and the debt service coverage ratio is 1.61x.

The underwriting syndicate was represented by BLG in Montreal, with a team led by Rick Shannon (securities), and assisted by Sophie De Koninck (securities) and Brian Schneiderman and Virginia Chan (taxation).