Bank of America marketing $460 mln Fortress CMBS
NEW YORK, Nov 19 (Reuters) - Bank of America is preparing to sell a $460 million commercial mortgage backed security next month after the first new issue since the market seized in mid-2008 sold briskly this week, according to a term sheet obtained by Reuters.
The new bond will be backed by properties owned by Fortress Investment Group (FIG.N), according to the loan summary.
Last month, Commercial Mortgage Alert reported that Fortress would aggregate $650 million in commercial mortgages in a new issue. It would help refinance a loan used to fund Fortress' $3.7 billion buyout of Florida East Coast Industries, operator of railway and property firm Flagler Development, the report said.
Properties backing the bonds will include real estate in Miami, Orlando and Jacksonville, including right-of-way and excess rail parcels, according to the term sheet. The issue would feature $350 million in debt with AAA ratings and three other portions, including a BBB- class.
Bonds must carry AAA ratings to be eligible for the Federal Reserve's Term Asset-Backed Securities Loan Facility, which offers investors low-cost loans to buy certain securities. But this issue may be sold without TALF funding, given that most of this week's $400 million issue from Developers Diversified Realty Corp went to investors who did not participate in the Fed program, one source said. (Reporting by Al Yoon; Editing by Padraic Cassidy)
