European Loan Conduit No. 31 (Libra): 25 July 2018
The Issuer will make payments on the Notes and the VRR Loan Interest from payments of principal and interest received by the Issuer under loans advanced by the Original Senior Lender to the Senior Borrowers pursuant to the Senior Facility Agreement. Immediately prior to the Closing Date, the Loan Seller shall acquire from the Original Senior Lender a €232,524,625 interest in the Senior Loan (being approximately 82% of the Senior Loan) and on the Closing Date the Loan Seller shall sell such interest to the Issuer pursuant to the Securitised Senior Loan Sale Documents.
On the Closing Date the Original Senior Lender will continue to hold an approximately 18% interest in the Senior Loan by virtue of holding the Facility B Loans, which the Original Senior Lender is free to deal with in its sole discretion.
The Senior Loan will be secured by, among other things, a portfolio of: (a) 27 multi-let industrial properties and 1 office property located in the Netherlands (the Dutch Properties); and (b) 10 warehouse properties, 9 business parks and 3 light industrial properties located in Germany (the German Properties). The properties offer approximately 654,478 sqm of total lettable area which is currently let to over 443 tenants (632 units) at a level of approximately 88.3%. The portfolio is well diversified across 11 unique towns or cities in the Netherlands and Germany, with the majority located in and around the West Netherlands.
EU risk retention: Morgan Stanley Bank N.A., as originator, will retain a material net economic interest of not less than 5% in the securitisation in accordance with the text of each of Article 405(1) of the Capital Requirements Regulation, Article 51(1) of the AIFM Regulation and Article 254(2) of the Solvency II Regulation.
As at the Closing Date, such interest will be comprised of the VRR Loan Interest which has a nominal value equal to at least 5% of the aggregate Principal Amount Outstanding of the Notes of all Classes and the principal balance of the VRR Loan Interest.
Compare/contrast: Kantoor Finance 2018 CMBS, Taurus 2016-2 DEU DAC