Structuring A/B, Pari Passu, Mezzanine, Preferred Equity and Intercreditor Arrangements for Securitization

Strafford Webinar

2.21.19

A/B, mezzanine and preferred equity components can impact a loan in different ways. Securitization parties will analyze loan and intercreditor documents to determine the subordinate lender’s ability to (a) transfer debt; (b) control the mortgaged property, the mortgage borrower, loan servicing and enforcement, and property management; and (c) receive payments and enforce its rights under the mortgage, among other issues. Counsel should be familiar with CMBS expectations and conventions concerning documenting each type of subordinate financing.

Partner Steven Coury serves on a panel of experienced practitioners outlining how best to address the concerns of rating agencies and investors who evaluate loans with subordinate financing, and the issues presented in servicing loans with subordinate financing after securitization. The panel will discuss the CMBS intercreditor form and other standards which should be followed to achieve the best execution at securitization.

This CLE webinar will provide real estate finance counsel with guidance on how to structure A/B, pari passu, mezzanine, preferred equity and intercreditor arrangements for successful execution in a CMBS transaction.

The panel will review these and other critical issues:

• How do rating agencies and investors (including B-piece buyers) evaluate subordinate financing?
• Why might preferred equity be viewed more favorably at securitization than a mezzanine loan?
• What are some key provisions for any intercreditor agreement, and how are they addressed in the accepted CMBS form?
• How should servicing rights be addressed in A/B or pari passu loan structures?