SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities and Exchange Act of 1934
Date of Report: December 4, 1996
(Date of earliest event reported)
Asset Securitization Corporation
(Exact name of registrant as specified in its charter)
Delaware 33-49370-02 13-3672337
- ----------------------------------------------------------------
(State or Other (Commission (I.R.S. Employer
Jurisdiction of File Number) Identification No.)
Incorporation)
Two World Financial Center, Building B, New York, New York 10281
- -------------------------------------------------------------
Address of Principal Executive Office
Registrant's telephone number, including area code: (212) 667-9300
<PAGE>
Item 5. Other Events.
Attached as Exhibit 1 to this Current Report are certain structural
and collateral term sheets (the "Term Sheets") furnished to Asset
Securitization Corporation (the "Registrant") by Nomura Securities
International, Inc. (the "Underwriter"), the underwriter in respect of the
Registrant's Commercial Mortgage Pass-Through Certificates, Series 1996-MDVI
(the "Certificates"). The Certificates are being Offered pursuant to a
Prospectus and related Prospectus Supplement (together, the "Prospectus"),
which will be filed with the Commission pursuant to Rule 424(b)(5) under the
Securities Act of 1933, as amended (the "Act"). The Certificates have been
registered pursuant to the Act under a Registration Statement on Form S-3
(No. 33-99502) (the "Registration Statement"). The Registrant hereby
incorporates the Term Sheets by reference in the Registration Statement.
The Term Sheets were prepared solely by the Underwriter, and the
Registrant did not prepare or participate in the preparation of the Term Sheets.
Any statement or information contained in the Term Sheets shall be
deemed to be modified or superseded for purposes of the Prospectus and the
Registration Statement by statements or information contained in the Prospectus.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
Exhibit 1. Term Sheets.
<PAGE>
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on behalf of the Registrant
by the undersigned thereunto duly authorized.
ASSET SECURITIZATION CORPORATION
By: /s/Perry Gershon
-----------------------------
Perry Gershon
Vice President
Date: December 4, 1996
<PAGE>
Exhibit Index
Item 601(a) of
Regulation S-K
Exhibit No. Exhibit No. Description
- ----------- ----------- -----------
1 99 Term Sheets
<PAGE>
EXHIBIT 1
<TABLE>
<S> <C> <C>
====================================================================================================================================
NOMURA SECURITIES INTERNATIONAL, INC. (212) 667-1545 Commercial Mortgage-Backed Securities
====================================================================================================================================
MegaDealSM VI - $895,196,535 All information as of
Structural Term Sheet 12/02/96 11:48 AM unless
otherwise noted.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Public Securities:
- ------------------
Ratings Initial Initial Price/ Avg. Mod. Principal Prin. Win DSCR LTV
Class S&P/ Moody's/Fitch Balance Coupon* Spread Life Dur. Window Graph Implied Implied Sub.
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
A-1A AAA/Aaa/ $ 94,311,998 6.69% 101-16 3.94 3.30 1/1997 - [GRAPHIC 2.93 34% 33%
fixed +45-48 11/2003 OMITTED]**
- ------------------------------------------------------------------------------------------------------------------------------------
A-1B AAA/Aaa/ $333,473,178 6.83% 101-16 6.91 5.36 Bullet [GRAPHIC 2.93 34% 33%
fixed +60-64 11/2003 OMITTED]**
- ------------------------------------------------------------------------------------------------------------------------------------
A-1C AAA/Aaa/ $171,996,502 6.98% 101-16 9.56 6.78 11/2003 - [GRAPHIC 2.93 34% 33%
fixed +70-75 10/2007 OMITTED]**
- ------------------------------------------------------------------------------------------------------------------------------------
A-2 AA/Aa1/ $ 35,807,861 6.90% 101-16 10.82 7.38 Bullet [GRAPHIC 2.76 36% 29%
wac +85-90 10/2007 OMITTED]**
- ------------------------------------------------------------------------------------------------------------------------------------
A-3 /Aa2/ $ 35,807,861 6.95% 101-16 10.82 7.36 Bullet [GRAPHIC 2.61 38% 25%
wac +90-95 10/2007 OMITTED]**
- ------------------------------------------------------------------------------------------------------------------------------------
A-4 /A2/A $ 44,759,826 7.00% 101-16 10.82 7.35 Bullet [GRAPHIC 2.45 41% 20%
wac +95-100 10/2007 OMITTED]**
- ------------------------------------------------------------------------------------------------------------------------------------
A-5 /A3/A- $ 22,379,913 7.05% 101-16 10.82 7.33 Bullet [GRAPHIC 2.38 42% 17.5%
wac +100-105 10/2007 OMITTED]**
- ------------------------------------------------------------------------------------------------------------------------------------
A-6 BBB/Baa2/BBB $ 49,235,809 7.24% 101-16 10.87 7.28 10/2007 - [GRAPHIC 2.23 45% 12%
wac +115-120 12/2007 OMITTED]**
- ------------------------------------------------------------------------------------------------------------------------------------
A-7 / /BBB- $ 71,615,722 7.54% 101-16 13.15 8.03 12/2007 - [GRAPHIC 2.04 49% 4%
wac +150-160 8/2011 OMITTED]**
- ------------------------------------------------------------------------------------------------------------------------------------
CS-1 AAA/AAAr $ 94,311,998 1.49% 5-09 2.48c 2.19 1/1997 - [GRAPHIC
Moody's, S&P $4.9 mm Proceeds wac +175-200 11/2003 OMITTED]**
- --------------------------------------------------------------------------------------------------------------
CS-2 AAA/AAAr $333,473,178 1.36% 7-27 3.51c 3.09 1/1997 - [GRAPHIC
Moody's, S&P $26.2 mm Proceeds wac +175-200 11/2003 OMITTED]**
- --------------------------------------------------------------------------------------------------------------
CS-3 AAA $431,603,494 1.09% 8-04 5.44c 4.48 1/1997 - [GRAPHIC
Moody's $32.2 mm Proceeds wac +200-225 8/2011 OMITTED]**
- --------------------------------------------------------------------------------------------------------------
Private Securities:
- -------------------
- -----------------------------------------------------------------------------------------------------------------------------
B-1 BB $35,806,865 8.19% 14.66 7.78 Bullet [GRAPHIC 1.96 51%
Fitch wac 8/2011 OMITTED]*
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Coupon will be adjusted monthly for actual day count.
** Prin. Win Graph depicted in hard copy (see p. 4).
Issue:
Asset Securitization Corporation Commercial Mortgage Pass-Through Certificates,
Series 1996-MD VI
The Certificates: $895,196,535 fixed rate CMBS
Rating Agencies: Fitch Investors Service,
Moody's Investors Service,
Standard & Poors
Lock Out: 99.6% locked out through term.
Cut-Off Date: December 17, 1996
Closing Date: December 17, 1996
First Payment Date: January 13, 1996
Scheduled Final Distribution Date: November 13, 2026
Servicer: AMRESCO Mgt., Inc.
Trustee: LaSalle National Bank
Fiscal Agent: ABN AMRO Bank N.V.
Advancing: Yes-Through liquidation
Minimum Denomination: $100,000
Delivery: DTC,CEDEL,Euroclear
Web Site: http://www.nomurany.com
Account Name: cmbs
A hard copy is available upon request.
- --------------------------------------------------------------------------------
[LOGO] NOMURA Prospective investors are advised to carefully
12/3/96 DIRECT.DOC read, and should rely solely on, the final
BF by JFS S-24 prospectus and prospectus supplement (the "Final
RP S-8 Prospectus") relating to the securities referred
to herein in making their investment decision.
This Structural and Collateral Term Sheet does not
include all relevant information relating to the
securities and collateral described herein,
particularly with respect to the risks and special
considerations associated with an investment in
such securities. All structure and collateral
information contained herein is preliminary and it
is anticipated that such information will change.
Any information contained herein will be more
fully described in, and will be fully superseded
by, the description of the collateral and
structure in the prospectus supplement and Final
Prospectus. Although the information contained in
this Structural and Collateral Term Sheet is based
on sources which Nomura Securities International,
Inc. ("Nomura") believes to be reliable, Nomura
makes no representation or warranty that such
information is accurate or complete. Such
information should not be viewed as projections,
forecasts, predictions or opinions with respect to
value, the actual rate or timing of principal
payments or prepayments on the underlying assets
or the performance characteristics of the
securities. Nomura and its affiliates may in the
future have a position in the securities discussed
herein and may purchase or sell the same on a
principal basis or as agent for another person. In
addition, Nomura may act as an underwriter of such
securities, and Nomura and certain of its
affiliates may currently be providing investment
banking and other services to the issuer of such
securities and the borrowers described herein and
their affiliates. Prior to making any investment
decision, a prospective investor shall receive and
fully review the Final Prospectus. NOTHING HEREIN
SHOULD BE CONSIDERED AN OFFER TO SELL OR
SOLICITATION OF AN OFFER TO BUY ANY SECURITIES.
All appraised values were obtained from appraisals
conducted within the past year.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<S> <C> <C>
====================================================================================================================================
NOMURA SECURITIES INTERNATIONAL, INC. (212) 667-1545 Commercial Mortgage-Backed Securities
====================================================================================================================================
MegaDealSM VI - $895,196,535 All information as of
Collateral Term Sheet 12/02/96 11:48 AM unless
otherwise noted.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
The Loans:
- ------------------------------------------------------------------------------------------------------------------------------------
Cut-off Loan Balloon Lockout Eff.
Property Amount Type Props NCF Rate Amort DSCR LTV LTV* Term Term
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Prime Retail* 358,748,252 Factory Outlet 16 55,811,194 ** 360 2.03 50% 46% 84 84
- ------------------------------------------------------------------------------------------------------------------------------------
HGI 99,217,643 Factory Outlet 5 16,946,108 9.06% 360 1.76 55% 51% 120 120
- ------------------------------------------------------------------------------------------------------------------------------------
Palmer Square 36,000,000 Office/Retail/ Hotel 4 6,862,075 8.09% 300 2.04 51% 41% 129 132
- ------------------------------------------------------------------------------------------------------------------------------------
Marriott 266,000,000 Full Service Hotels 4 55,876,956 8.22% 240 2.06 49% 35% 132 132
- ------------------------------------------------------------------------------------------------------------------------------------
Columbia Sussex 135,230,640 Full Service Hotels 12 24,808,887 8.87% 240 1.71 57% 26% 180 180
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 895,196,535 41 160,305,219 304 1.96 51% 40% 118 119
</TABLE>
* The $40 mm Expansion Escrow for the Prime loan is not included in the DSCR,
LTV and Balloon LTV calculations.
** Prime rate for years 1-2 is 1 month LIBOR + 151, the rate for years 3 - 7
is 7.78%.
The Collateral
- --------------
- --------------------------------------------------------------------------------
Property Type # of Props Cut-off Loan Amount % of Pool
- --------------------------------------------------------------------------------
Factory Outlet 21 417,937,845 51%
- --------------------------------------------------------------------------------
Hotel 16 401,230,640 45%
- --------------------------------------------------------------------------------
Office/ Retail/Hotel 4 36,000,000 4%
- --------------------------------------------------------------------------------
41 855,168,485 100%
Geographic Diversification
[GRAPHIC OMITTED]
[MAP OF THE CONTINENTAL UNITED STATES SHOWING THE BORDERS OF THE STATES]
[THE FOLLOWING FIGURES IN THE FOLLOWING TABLE WERE PRESENT ON THE MAP OF THE
UNITED STATES]
AL .................................. 1%
CA .................................. 12%
CO .................................. 6%
FL .................................. 9%
GA .................................. 3%
IL .................................. 3%
IN .................................. 1%
KY .................................. 3%
LA .................................. 12%
MD .................................. 2%
MI .................................. 1%
MS .................................. 2%
MO .................................. 1%
NE .................................. 1%
NJ .................................. 7%
NY .................................. 3%
NC .................................. 1%
OH .................................. 3%
PA .................................. 8%
TX .................................. 21%
o 41 Properties
o 20 States
- --------------------------------------------------------------------------------
[LOGO] NOMURA Prospective investors are advised to carefully
12/3/96 DIRECT.DOC read, and should rely solely on, the final
BF by JFS S-24 prospectus and prospectus supplement (the "Final
RP S-8 Prospectus") relating to the securities referred
to herein in making their investment decision.
This Structural and Collateral Term Sheet does not
include all relevant information relating to the
securities and collateral described herein,
particularly with respect to the risks and special
considerations associated with an investment in
such securities. All structure and collateral
information contained herein is preliminary and it
is anticipated that such information will change.
Any information contained herein will be more
fully described in, and will be fully superseded
by, the description of the collateral and
structure in the prospectus supplement and Final
Prospectus. Although the information contained in
this Structural and Collateral Term Sheet is based
on sources which Nomura Securities International,
Inc. ("Nomura") believes to be reliable, Nomura
makes no representation or warranty that such
information is accurate or complete. Such
information should not be viewed as projections,
forecasts, predictions or opinions with respect to
value, the actual rate or timing of principal
payments or prepayments on the underlying assets
or the performance characteristics of the
securities. Nomura and its affiliates may in the
future have a position in the securities discussed
herein and may purchase or sell the same on a
principal basis or as agent for another person. In
addition, Nomura may act as an underwriter of such
securities, and Nomura and certain of its
affiliates may currently be providing investment
banking and other services to the issuer of such
securities and the borrowers described herein and
their affiliates. Prior to making any investment
decision, a prospective investor shall receive and
fully review the Final Prospectus. NOTHING HEREIN
SHOULD BE CONSIDERED AN OFFER TO SELL OR
SOLICITATION OF AN OFFER TO BUY ANY SECURITIES.
All appraised values were obtained from appraisals
conducted within the past year.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<S> <C> <C>
====================================================================================================================================
NOMURA SECURITIES INTERNATIONAL, INC. (212) 667-1545 Commercial Mortgage-Backed Securities
====================================================================================================================================
MegaDealSM VI - $895,196,535 All information as of
Collateral Term Sheet 12/02/96 11:48 AM unless
otherwise noted.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Call Protection:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1/97 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Prime Retail====================================================
HGI==================================================================================
Palmer Square====================================================================== free
Marriott=======================================================================================
Columbia Sussex===============================================================================================================
</TABLE>
Note: Chart shows lock-out to the effective term of each loan.
<TABLE>
<CAPTION>
Underwriting:
Principal Manager Cross
Loan Pool Repayment Removal Lock Box Collateralization Reporting
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Prime Retail Effective Balloon YES Hard YES Monthly, Quarterly & Yearly
- ------------------------------------------------------------------------------------------------------------------------------------
HGI Effective Balloon YES Hard YES Monthly, Quarterly & Yearly
- ------------------------------------------------------------------------------------------------------------------------------------
Palmer Square Effective Balloon YES Hard* N/A Monthly, Quarterly & Yearly
- ------------------------------------------------------------------------------------------------------------------------------------
Marriott Effective Balloon NO NA** YES Quarterly & Yearly
- ------------------------------------------------------------------------------------------------------------------------------------
Columbia Sussex Effective Balloon YES Hard YES Monthly & Yearly
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* If the DSCR is greater than 1.80X, the borrower has the option to put up a
2 month debt service reserve instead of a lockbox.
** There is no lockbox required as long as Marriott's credit rating remains
"A" or better.
Definitions:
Effective Balloon: At the anticipated repayment date, if the Borrower
fails to repay the loan, while not an event of default,
100% of the cash flows from the properties are trapped
to pay down the remaining principal balance. In
addition, the interest rate steps up and additional
interest in excess of the initial interest rate accrues
and is deferred until the principal has been reduced to
zero. Thereafter, all such cash flows will be applied
to the reduction of deferred additional interest.
Manager Removal: In general, upon default by Borrower under the Mortgage
Loan or dropping below some preset DSCR standard.
Lock Box: Hard Lock Box requires revenues to be payable by the
tenants directly to a cleaning account which is swept
into a collection account maintained by the servicer.
In the case of Hotel Loans, all credit card receipts go
directly to a cleaning account while the manager is
required to deposit all other revenues into a cleaning
account which is swept into the collection account.
- --------------------------------------------------------------------------------
[LOGO] NOMURA Prospective investors are advised to carefully
12/3/96 DIRECT.DOC read, and should rely solely on, the final
BF by JFS S-24 prospectus and prospectus supplement (the "Final
RP S-8 Prospectus") relating to the securities referred
to herein in making their investment decision.
This Structural and Collateral Term Sheet does not
include all relevant information relating to the
securities and collateral described herein,
particularly with respect to the risks and special
considerations associated with an investment in
such securities. All structure and collateral
information contained herein is preliminary and it
is anticipated that such information will change.
Any information contained herein will be more
fully described in, and will be fully superseded
by, the description of the collateral and
structure in the prospectus supplement and Final
Prospectus. Although the information contained in
this Structural and Collateral Term Sheet is based
on sources which Nomura Securities International,
Inc. ("Nomura") believes to be reliable, Nomura
makes no representation or warranty that such
information is accurate or complete. Such
information should not be viewed as projections,
forecasts, predictions or opinions with respect to
value, the actual rate or timing of principal
payments or prepayments on the underlying assets
or the performance characteristics of the
securities. Nomura and its affiliates may in the
future have a position in the securities discussed
herein and may purchase or sell the same on a
principal basis or as agent for another person. In
addition, Nomura may act as an underwriter of such
securities, and Nomura and certain of its
affiliates may currently be providing investment
banking and other services to the issuer of such
securities and the borrowers described herein and
their affiliates. Prior to making any investment
decision, a prospective investor shall receive and
fully review the Final Prospectus. NOTHING HEREIN
SHOULD BE CONSIDERED AN OFFER TO SELL OR
SOLICITATION OF AN OFFER TO BUY ANY SECURITIES.
All appraised values were obtained from appraisals
conducted within the past year.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<S> <C> <C>
====================================================================================================================================
NOMURA SECURITIES INTERNATIONAL, INC. (212) 667-1545 Commercial Mortgage-Backed Securities
====================================================================================================================================
MegaDealSM VI - $895,196,535 All information as of
Collateral Term Sheet 12/02/96 11:48 AM unless
otherwise noted.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
The hard copy version of this document displays a graph depicting
Principal Bonds' Cash Flows (Principal Only) and has been
modified for this EDGAR filing as a table of the same information
as follows:
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
- -----------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
B1 = ____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ $35.81
A7 = $16.66 $6.63 $7.28 $7.96 $33.09
A6 = ____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ $49.24
A5 = ____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ $22.38 _____ _____ _____
A4 = ____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ $44.76 _____ _____ _____ _____
A3 = ____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ $35.81 _____ _____ _____ _____
A2 = ____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ $35.81 _____ _____ _____ _____
A1C= ____ _____ _____ _____ _____ _____ _____ $2.79$14.93$16.39$108.57$29.31 _____ _____ _____ _____
A1B= ____ _____ _____ _____ _____ _____ _____ $333.47_____ _____ _____ _____ _____ _____ _____ _____
A1A= $7.03$11.99$13.04$13.97$15.41$16.75 $16.11 _____ _____ _____ _____ _____ _____ _____ _____
</TABLE>
The hard copy version of this document displays a graph depicting
Loan Principal Cash Flows and has been modified for this EDGAR
filing as a table of the same information as follows:
<TABLE>
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
- -----------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Prime
Retail ____ $4.22 $4.55 $3.39 $3.60 $3.97 $4.30 $334.97_____ _____ _____ _____ _____ _____ _____ _____
Palmer
Square ____ $0.42 $0.46 $0.50 $0.53 $0.59 $0.64 $0.69 $0.74 $0.81 $0.88 $29.74 _____ _____ _____ _____
HGI ____ $0.54 $0.60 $0.65 $0.69 $0.78 $0.86 $0.94 $1.00 $1.13 $92.07 _____ _____ _____ _____ _____
MHP2 ____ $0.38 $5.20 $5.65 $6.08 $6.67 $7.24 $7.87 $8.50 $9.29 $10.09$199.03 _____ _____ _____ _____
Columbia
Sussex ____ $2.47 $2.70 $2.95 $3.20 $3.53 $3.86 $4.22 $4.59 $5.05 $5.52 $6.04 $6.58 $7.22 $7.90 $69.60
</TABLE>
- --------------------------------------------------------------------------------
[LOGO] NOMURA Prospective investors are advised to carefully
12/3/96 DIRECT.DOC read, and should rely solely on, the final
BF by JFS S-24 prospectus and prospectus supplement (the "Final
RP S-8 Prospectus") relating to the securities referred
to herein in making their investment decision.
This Structural and Collateral Term Sheet does not
include all relevant information relating to the
securities and collateral described herein,
particularly with respect to the risks and special
considerations associated with an investment in
such securities. All structure and collateral
information contained herein is preliminary and it
is anticipated that such information will change.
Any information contained herein will be more
fully described in, and will be fully superseded
by, the description of the collateral and
structure in the prospectus supplement and Final
Prospectus. Although the information contained in
this Structural and Collateral Term Sheet is based
on sources which Nomura Securities International,
Inc. ("Nomura") believes to be reliable, Nomura
makes no representation or warranty that such
information is accurate or complete. Such
information should not be viewed as projections,
forecasts, predictions or opinions with respect to
value, the actual rate or timing of principal
payments or prepayments on the underlying assets
or the performance characteristics of the
securities. Nomura and its affiliates may in the
future have a position in the securities discussed
herein and may purchase or sell the same on a
principal basis or as agent for another person. In
addition, Nomura may act as an underwriter of such
securities, and Nomura and certain of its
affiliates may currently be providing investment
banking and other services to the issuer of such
securities and the borrowers described herein and
their affiliates. Prior to making any investment
decision, a prospective investor shall receive and
fully review the Final Prospectus. NOTHING HEREIN
SHOULD BE CONSIDERED AN OFFER TO SELL OR
SOLICITATION OF AN OFFER TO BUY ANY SECURITIES.
All appraised values were obtained from appraisals
conducted within the past year.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<S> <C> <C>
====================================================================================================================================
NOMURA SECURITIES INTERNATIONAL, INC. (212) 667-1545 Commercial Mortgage-Backed Securities
====================================================================================================================================
MegaDealSM VI - $895,196,535 All information as of
Collateral Term Sheet 12/02/96 11:48 AM unless
otherwise noted.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
================================================================================
Prime Retail
================================================================================
Original Current
Principal Balance: $359,000,000 $358,748,252
Origination Date: October 31, 1996
Interest Rate: 1mo LIBOR+151 Yrs 1-2
7.782% Yrs 3-7
Amortization: 360 mos.
Effective Maturity: 84 mos.
Call Protection: Locked out for Eff. Term
Release of Collateral:
o Defeasance of 125% of the allocated loan balance
o DSCR greater than the initial DSCR and the DSCR immediately preceding the
release.
Net Cash Flow: $55,811,194
Adjusted as of 10/96
Debt Service Coverage Ratio: 2.03X
Appraised Value: $642,530,000
Loan to Value: 50%
Loan Per Square Foot: $71.67
Cross-Collateralization/Default: Fully Crossed
The Borrower:
o The borrower is a special purpose limited partnership substantially
controlled by Prime Retail, Inc., a publicly traded REIT ("PRME").
The Properties:
o 16 factory outlet centers located in 12 different states and comprising
over 4.4 million square feet.
o The Collateral represents substantially all of Prime's wholly owned assets.
o The weighted average occupancy of the pool is 93% and includes such
national tenants as Polo, Nike, Ann Taylor, J. Crew, Reebok, Brooks
Brothers, Levi's and Coach.
Occ.
Property Location Square Feet 11/96
- --------------------------------------------------------------------------------
Grove City Grove City, PA 415,670 100%
- --------------------------------------------------------------------------------
San Marcos San Marcos, TX 419,126 98%
- --------------------------------------------------------------------------------
Castle Rock Castle Rock, CO 369,220 99%
- --------------------------------------------------------------------------------
Gulf Coast Ellenton, FL 340,656 98%
- --------------------------------------------------------------------------------
Ohio Jeffersonville, OH 308,941 96%
- --------------------------------------------------------------------------------
Rocky Mountain Loveland, CO 328,358 100%
- --------------------------------------------------------------------------------
Magnolia Bluff Darien, GA 299,249 82%
- --------------------------------------------------------------------------------
Gainesville Gainesville, TX 315,627 93%
- --------------------------------------------------------------------------------
Gulfport Gulfport, MS 251,239 90%
- --------------------------------------------------------------------------------
Huntley Huntley, IL 280,112 81%
- --------------------------------------------------------------------------------
Florida Keys Florida City, FL 207,131 90%
- --------------------------------------------------------------------------------
Kansas City Odessa, MO 190,589 100%
- --------------------------------------------------------------------------------
Indiana Daleville, IN 209,090 87%
- --------------------------------------------------------------------------------
Nebraska Crossing Gretna, NE 191,544 96%
- --------------------------------------------------------------------------------
Coral Isle Naples, FL 126,595 99%
- --------------------------------------------------------------------------------
Triangle Morrisville, NC 193,837 89%
- --------------------------------------------------------------------------------
Totals: 4,446,984
- --------------------------------------------------------------------------------
Management:
The properties are managed by Prime Retail.
Up Front Reserves: $174,608
On-Going Cap. Ex. Reserve: $0.20/sf
Expansion Escrow: $40,000,000
The up-front reserve will be released provided there is a minimum NOI based on
leases in place with national tenants who have been in place for at least 3
months. In addition, the borrower must provide a "no downgrade" letter from the
rating agencies.
Collection Account: Hard Lock Box
Removal of Manager:
o Event of a default
o DCSR drops below 1.15X.
Reporting Requirements:
o Certified monthly and quarterly property operating statements
o Annual audited financial statements
- --------------------------------------------------------------------------------
[LOGO] NOMURA Prospective investors are advised to carefully
12/3/96 DIRECT.DOC read, and should rely solely on, the final
BF by JFS S-24 prospectus and prospectus supplement (the "Final
RP S-8 Prospectus") relating to the securities referred
to herein in making their investment decision.
This Structural and Collateral Term Sheet does not
include all relevant information relating to the
securities and collateral described herein,
particularly with respect to the risks and special
considerations associated with an investment in
such securities. All structure and collateral
information contained herein is preliminary and it
is anticipated that such information will change.
Any information contained herein will be more
fully described in, and will be fully superseded
by, the description of the collateral and
structure in the prospectus supplement and Final
Prospectus. Although the information contained in
this Structural and Collateral Term Sheet is based
on sources which Nomura Securities International,
Inc. ("Nomura") believes to be reliable, Nomura
makes no representation or warranty that such
information is accurate or complete. Such
information should not be viewed as projections,
forecasts, predictions or opinions with respect to
value, the actual rate or timing of principal
payments or prepayments on the underlying assets
or the performance characteristics of the
securities. Nomura and its affiliates may in the
future have a position in the securities discussed
herein and may purchase or sell the same on a
principal basis or as agent for another person. In
addition, Nomura may act as an underwriter of such
securities, and Nomura and certain of its
affiliates may currently be providing investment
banking and other services to the issuer of such
securities and the borrowers described herein and
their affiliates. Prior to making any investment
decision, a prospective investor shall receive and
fully review the Final Prospectus. NOTHING HEREIN
SHOULD BE CONSIDERED AN OFFER TO SELL OR
SOLICITATION OF AN OFFER TO BUY ANY SECURITIES.
All appraised values were obtained from appraisals
conducted within the past year.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<S> <C> <C>
====================================================================================================================================
NOMURA SECURITIES INTERNATIONAL, INC. (212) 667-1545 Commercial Mortgage-Backed Securities
====================================================================================================================================
MegaDealSM VI - $895,196,535 All information as of
Collateral Term Sheet 12/02/96 12:18 PM unless
otherwise noted.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Year Allocated Appraised U/W Cash TTM NOI as
Property Built Loan Amount Value flow of 9/96 1995 NOI
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
Grove City** 1993 36,200,000 78,300,000 6,315,022 7,012,071 5,138,799
- ----------------------------------------------------------------------------------------------------
San Marcos 1990 34,650,000 64,000,000 5,937,324 6,700,253 6,457,605
- ----------------------------------------------------------------------------------------------------
Castle Rock 1992 31,500,000 61,000,000 5,488,196 6,951,159 6,745,118
- ----------------------------------------------------------------------------------------------------
Gulf Coast 1991 25,800,000 44,500,000 4,600,710 4,705,420 4,590,387
- ----------------------------------------------------------------------------------------------------
Ohio 1993 23,250,000 42,000,000 4,034,904 4,488,735 4,402,280
- ----------------------------------------------------------------------------------------------------
Loveland 1994 23,000,000 46,000,000 4,072,208 4,387,100 3,661,941
- ----------------------------------------------------------------------------------------------------
Magnolia Bluff 1995 22,200,000 45,500,000 3,583,869 3,610,613 1,816,721
- ----------------------------------------------------------------------------------------------------
Gainesville 1993 21,000,000 41,000,000 3,734,676 4,753,672 4,677,293
- ----------------------------------------------------------------------------------------------------
Gulfport 1995 17,500,000 30,000,000 3,143,492 2,764,821 484,312
- ----------------------------------------------------------------------------------------------------
Huntley 1994 15,600,000 36,900,000 2,706,209 3,011,931 2,676,251
- ----------------------------------------------------------------------------------------------------
Florida Keys 1994 13,700,000 28,200,000 2,369,767 2,579,221 2,731,432
- ----------------------------------------------------------------------------------------------------
Kansas City 1995 12,800,000 39,500,000 2,335,213 2,831,484 1,154,062
- ----------------------------------------------------------------------------------------------------
Indiana 1994 12,500,000 29,000,000 2,159,869 2,436,238 2,189,745
- ----------------------------------------------------------------------------------------------------
Nebraska Crossing 1993 10,300,000 18,630,000 1,842,044 2,219,757 2,245,991
- ----------------------------------------------------------------------------------------------------
Coral Isle 1991 9,500,000 18,000,000 1,674,634 1,831,318 1,851,199
- ----------------------------------------------------------------------------------------------------
Triangle 1985 9,500,000 20,000,000 1,813,056 1,794,860 1,594,547
- ----------------------------------------------------------------------------------------------------
Totals: 319,000,000* 642,530,000 55,811,194 62,078,653 52,417,683
- ----------------------------------------------------------------------------------------------------
* Total Allocated Loan Amount does not include $40,000,000 of expansion escrow.
- ----------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Lease Expiration Analysis:
- --------------------------------------------------------------------------------
Year # of Occupied % of Occ SF Annualized % of ABR
Leases SF Base Rent
- --------------------------------------------------------------------------------
1996 14 30,864 0.7% $ 420,447 0.7%
1997 93 283,116 6.4% $ 3,808,214 6.5%
1998 142 447,809 10.1% $ 6,692,747 11.4%
1999 213 698,611 15.7% $ 10,130,995 17.2%
2000 291 929,270 20.9% $ 14,006,454 23.8%
2001 211 693,765 15.6% $ 10,561,929 17.9%
2002 77 255,195 5.7% $ 3,701,651 6.3%
2003 24 153,718 3.5% $ 2,013,236 3.4%
2004 37 224,123 5.0% $ 2,716,648 4.6%
2005 38 215,402 4.8% $ 2,779,014 4.7%
2006 5 72,213 1.7% $ 868,910 1.5%
2010 1 22,176 0.5% $ 210,672 0.4%
2011 3 60,524 1.4% $ 384,399 0.7%
2016 1 3,590 0.1% $ 46,670 0.1%
MTM 14 47,496 1.1% $ 513,654 0.9%
vacant 103 305,112 6.9% -- --
- --------------------------------------------------------------------------------
Total: 4,141,872 58,855,639
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[LOGO] NOMURA Prospective investors are advised to carefully
12/3/96 DIRECT.DOC read, and should rely solely on, the final
BF by JFS S-24 prospectus and prospectus supplement (the "Final
RP S-8 Prospectus") relating to the securities referred
to herein in making their investment decision.
This Structural and Collateral Term Sheet does not
include all relevant information relating to the
securities and collateral described herein,
particularly with respect to the risks and special
considerations associated with an investment in
such securities. All structure and collateral
information contained herein is preliminary and it
is anticipated that such information will change.
Any information contained herein will be more
fully described in, and will be fully superseded
by, the description of the collateral and
structure in the prospectus supplement and Final
Prospectus. Although the information contained in
this Structural and Collateral Term Sheet is based
on sources which Nomura Securities International,
Inc. ("Nomura") believes to be reliable, Nomura
makes no representation or warranty that such
information is accurate or complete. Such
information should not be viewed as projections,
forecasts, predictions or opinions with respect to
value, the actual rate or timing of principal
payments or prepayments on the underlying assets
or the performance characteristics of the
securities. Nomura and its affiliates may in the
future have a position in the securities discussed
herein and may purchase or sell the same on a
principal basis or as agent for another person. In
addition, Nomura may act as an underwriter of such
securities, and Nomura and certain of its
affiliates may currently be providing investment
banking and other services to the issuer of such
securities and the borrowers described herein and
their affiliates. Prior to making any investment
decision, a prospective investor shall receive and
fully review the Final Prospectus. NOTHING HEREIN
SHOULD BE CONSIDERED AN OFFER TO SELL OR
SOLICITATION OF AN OFFER TO BUY ANY SECURITIES.
All appraised values were obtained from appraisals
conducted within the past year.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<S> <C> <C>
====================================================================================================================================
NOMURA SECURITIES INTERNATIONAL, INC. (212) 667-1545 Commercial Mortgage-Backed Securities
====================================================================================================================================
MegaDealSM VI - $896,300,000 All information as of
Collateral Term Sheet 12/02/96 11:48 AM unless
otherwise noted.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
================================================================================
HGI
================================================================================
Original Current
-------- -------
Principal Balance: $99,300,000 $99,217,643
Origination Date: October, 1996
Interest Rate: 9.06%
Amortization: 360 months
Effective Maturity: 120 months
Call Protection: Locked out for Eff. Term
Release of Collateral:
o Defeasance of 125% of the allocated loan balance
o DSCR greater than the initial DSCR and the DSCR immediately preceding the
release.
Net Cash Flow: $16,946,108
Adjusted as of 7/31/96
Debt Service Coverage Ratio: 1.76X
Appraised Value: $179,000,000
Loan to Value: 55%
Loan Per Square Foot: $79.56
Cross-Collateralization/Default: Fully Crossed
The Borrower:
o The borrower is a special purpose, bankruptcy remote entity controlled by
Horizon Group, Inc., a publicly traded REIT ("HGI").
o HGI is engaged primarily in the ownership, development, construction,
acquisition, leasing, marketing and management of factory outlet centers
throughout the U.S.
o As of 9/96, HGI had a total market cap. of $945.6 mm.
o HGI owned and operated 35 factory outlet centers containing approximately
8.5 mm SF, as of 3/96.
The Properties:
o The collateral consists of 5 factory outlet centers located in 3 states.
Square Occ 1995 1994
Property Location Feet 9/96 Occ Occ
- -----------------------------------------------------------------
Lake Elsinore Lake Elsinore, CA 368,785 91% 90% 96%
- -----------------------------------------------------------------
Southwest Hillsboro, TX 359,455 95% 97% 99%
- -----------------------------------------------------------------
Chesapeake Queenstown, MD 219,307 100% 97% 97%
- -----------------------------------------------------------------
Tracy Tracy, CA 153,000 98% 92% 92%
- -----------------------------------------------------------------
Pismo Beach Pismo Beach, CA 147,560 96% 92% 55%
- -----------------------------------------------------------------
Total: 1,248,107 96% 94% 92%
- -----------------------------------------------------------------
Year Allocated Appraised Sales Occ
Property Built Loan Amt Value PSF Cost
- --------------------------------------------------------------------
Lake Elsinore 91-96 $ 29,475,533 $ 58,300,000 $ 232 10%
- --------------------------------------------------------------------
Southwest 89-95 $ 28,476,363 $ 46,500,000 $ 220 8%
- --------------------------------------------------------------------
Chesapeake 89-93 $ 17,385,569 $ 30,000,000 $ 269 6%
- --------------------------------------------------------------------
Tracy 1994 $ 12,089,965 $ 21,400,000 $ 174 11%
- --------------------------------------------------------------------
Pismo Beach 1994 $ 11,790,213 $ 22,800,000 $ 190 12%
- --------------------------------------------------------------------
Total: $ 99,217,643 $179,000,000
- --------------------------------------------------------------------
U/W Net TTM NOI as
Property Cash Flow of 7/96 1995 NOI 1994 NOI
- -----------------------------------------------------------------
Lk Elsinore $5,527,553 $5,766,338 $5,401,648 $5,047,250
- -----------------------------------------------------------------
Southwest $4,564,527 $4,794,879 $3,806,803 $2,868,991
- -----------------------------------------------------------------
Chesapeake $2,797,614 $3,149,524 $3,214,676 $3,070,607
- -----------------------------------------------------------------
Tracy $1,879,427 $2,257,289 $2,370,544 $ 421,369
- -----------------------------------------------------------------
Pismo Bch $2,176,987 2,231,629 $1,763,734 $ 73,518
- -----------------------------------------------------------------
Total: $16,946,108 18,199,659 16,557,405 11,481,735
- -----------------------------------------------------------------
Management:
o The properties are managed by Horizon/Glen Outlet Centers LP, the sole
limited partner of the borrower.
Up Front Reserves: $61,000
On-Going Cap. Ex. Reserve: $0.50 psf
Collection Account: Hard Lock Box
Removal of Manager:
o Event of a default
o DCSR drops below 1.15X
o If a tenant is moved from a collateral center to an adjacent center owned
by an affiliate of the borrower
- --------------------------------------------------------------------------------
[LOGO] NOMURA Prospective investors are advised to carefully
12/3/96 DIRECT.DOC read, and should rely solely on, the final
BF by JFS S-24 prospectus and prospectus supplement (the "Final
RP S-8 Prospectus") relating to the securities referred
to herein in making their investment decision.
This Structural and Collateral Term Sheet does not
include all relevant information relating to the
securities and collateral described herein,
particularly with respect to the risks and special
considerations associated with an investment in
such securities. All structure and collateral
information contained herein is preliminary and it
is anticipated that such information will change.
Any information contained herein will be more
fully described in, and will be fully superseded
by, the description of the collateral and
structure in the prospectus supplement and Final
Prospectus. Although the information contained in
this Structural and Collateral Term Sheet is based
on sources which Nomura Securities International,
Inc. ("Nomura") believes to be reliable, Nomura
makes no representation or warranty that such
information is accurate or complete. Such
information should not be viewed as projections,
forecasts, predictions or opinions with respect to
value, the actual rate or timing of principal
payments or prepayments on the underlying assets
or the performance characteristics of the
securities. Nomura and its affiliates may in the
future have a position in the securities discussed
herein and may purchase or sell the same on a
principal basis or as agent for another person. In
addition, Nomura may act as an underwriter of such
securities, and Nomura and certain of its
affiliates may currently be providing investment
banking and other services to the issuer of such
securities and the borrowers described herein and
their affiliates. Prior to making any investment
decision, a prospective investor shall receive and
fully review the Final Prospectus. NOTHING HEREIN
SHOULD BE CONSIDERED AN OFFER TO SELL OR
SOLICITATION OF AN OFFER TO BUY ANY SECURITIES.
All appraised values were obtained from appraisals
conducted within the past year.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<S> <C> <C>
====================================================================================================================================
NOMURA SECURITIES INTERNATIONAL, INC. (212) 667-1545 Commercial Mortgage-Backed Securities
====================================================================================================================================
MegaDealSM VI - $896,300,000 All information as of
Collateral Term Sheet 12/02/96 12:21 PM unless
otherwise noted.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Reporting Requirements:
o Certified monthly and quarterly property operating statements
o Annual audited financial statements
Lease Expiration Analysis:
================================================================================
Year # of Occupied % of Occ Annualized % of
Leases SF SF Base Rent ABR
- --------------------------------------------------------------------------------
1996 11 35,480 3.2% $613,095 3.7%
1997 34 101,355 8.1% $1,723,385 9.2%
1998 35 109,694 8.8% $1,873,774 10.0%
1999 69 201,255 16.7% $3,519,722 19.4%
2000 73 232,271 18.6% $3,911,878 20.9%
2001 49 221,273 18.1% $3,297,369 17.9%
2002 14 66,845 5.4% $978,710 5.2%
2003 9 60,272 4.8% $760,115 4.1%
2004 6 29,032 2.3% $413,498 2.2%
2005 5 53,200 4.3% $565,280 3.0%
2006 5 47,500 3.8% $593,500 3.2%
2009 1 12,000 1.0% $120,000 0.6%
2010 1 15,000 1.2% $120,000 0.6%
vacant 18 62,930 5.0% -- --
- --------------------------------------------------------------------------------
Total/WA 330 1,248,107 100% $18,490,316 100%
================================================================================
- --------------------------------------------------------------------------------
[LOGO] NOMURA Prospective investors are advised to carefully
12/3/96 DIRECT.DOC read, and should rely solely on, the final
BF by JFS S-24 prospectus and prospectus supplement (the "Final
RP S-8 Prospectus") relating to the securities referred
to herein in making their investment decision.
This Structural and Collateral Term Sheet does not
include all relevant information relating to the
securities and collateral described herein,
particularly with respect to the risks and special
considerations associated with an investment in
such securities. All structure and collateral
information contained herein is preliminary and it
is anticipated that such information will change.
Any information contained herein will be more
fully described in, and will be fully superseded
by, the description of the collateral and
structure in the prospectus supplement and Final
Prospectus. Although the information contained in
this Structural and Collateral Term Sheet is based
on sources which Nomura Securities International,
Inc. ("Nomura") believes to be reliable, Nomura
makes no representation or warranty that such
information is accurate or complete. Such
information should not be viewed as projections,
forecasts, predictions or opinions with respect to
value, the actual rate or timing of principal
payments or prepayments on the underlying assets
or the performance characteristics of the
securities. Nomura and its affiliates may in the
future have a position in the securities discussed
herein and may purchase or sell the same on a
principal basis or as agent for another person. In
addition, Nomura may act as an underwriter of such
securities, and Nomura and certain of its
affiliates may currently be providing investment
banking and other services to the issuer of such
securities and the borrowers described herein and
their affiliates. Prior to making any investment
decision, a prospective investor shall receive and
fully review the Final Prospectus. NOTHING HEREIN
SHOULD BE CONSIDERED AN OFFER TO SELL OR
SOLICITATION OF AN OFFER TO BUY ANY SECURITIES.
All appraised values were obtained from appraisals
conducted within the past year.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<S> <C> <C>
====================================================================================================================================
NOMURA SECURITIES INTERNATIONAL, INC. (212) 667-1545 Commercial Mortgage-Backed Securities
====================================================================================================================================
MegaDealSM VI - $896,300,000 All information as of
Collateral Term Sheet 12/02/96 11:48 AM unless
otherwise noted.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
================================================================================
Palmer Square
================================================================================
Principal Amount: $36,000,000
Origination Date: November 22, 1996
Interest Rate: 8.09%
Amortization: 300 months
Effective Maturity: 132 months
Call Protection: Locked out until 3 mos. prior to Effective
Maturity Date
Release of Collateral:
o Defeasance of 125% of the allocated loan balance if 10% or more of the
principal balance defeased; 135% if 5-10% defeased and 150% if less than 5%
defeased
o DSCR greater than 1.80X and the DSCR immediately preceding the release.
Net Cash Flow: $6,862,075
Adjusted as of 5/96
Debt Service Coverage Ratio: 2.04X
Appraised Value: $70,800,000
Loan to Value: 51%
Cross-Collateralization/Default: Fully Crossed
The Borrower:
o The borrower is comprised of three special purpose limited partnerships
substantially controlled by Ed Aboodi.
The Collateral:
o The collateral consists of a 7 building complex comprised of a hotel, an
office building, a retail center and parking facilities located in
Princeton, NJ.
o The retail comprises 38% of Net Cash Flow, the office comprises 19%, the
hotel comprises 31% and parking comprises 12%.
Retail Component:
o The property contains 102,485 SF of in-line retail space with tenants
including Ann Taylor, The Gap, JB Winberies, Talbots, Banana Republic and
Nine West. The valuation of the retail component is $32,100,000.
o 1995 Sales were $32,347,758 with Sales psf of $466. 1994 Sales were
$32,161,894 with Sales psf of $464.
- --------------------------------------------------------------------------------
U/W TTM 5/96 1995 1994
- --------------------------------------------------------------------------------
NOI 2,613,278 2,507,807 2,318,317 2,326,259
- --------------------------------------------------------------------------------
Occ 93% 93% 94% 97%
- --------------------------------------------------------------------------------
Office Component:
o The property contains 130,502 SF of office space that generates $24.10 rent
psf.
o The valuation of the office component is $19,800,000.
- --------------------------------------------------------------------------------
U/W TTM 5/96 1995 1994
- --------------------------------------------------------------------------------
NOI 1,313,375 1,897,549 1,786,108 1,611,120
- --------------------------------------------------------------------------------
Occ 89% 97% 97% 90%
- --------------------------------------------------------------------------------
Hotel Component:
o The property contains 216 hotel rooms.
o The valuation of the hotel component is $18,900,000.
- --------------------------------------------------------------------------------
U/W TTM 1995 1994
8/96
- --------------------------------------------------------------------------------
NOI 2,126,667 2,862,898 2,552,344 2,337,652
- --------------------------------------------------------------------------------
Occ 66% 67% 66% 66%
- --------------------------------------------------------------------------------
ADR $122.25 $122.25 $117.72 $109.35
- --------------------------------------------------------------------------------
Parking Component:
o The property contains 994 parking spaces.
o The valuation of the parking is included in the appraised values of the
retail and office components.
- --------------------------------------------------------------------------------
U/W TTM 9/96 1995 1994
- --------------------------------------------------------------------------------
NOI 808,754 853,302 736,157 673,467
- --------------------------------------------------------------------------------
Management:
o The property manager is an affiliate of the borrower.
Up Front Reserves: $115,000
On-Going Cap. Ex. Reserve: $0.25 psf for retail
$0.50 psf for office
4% of hotel revenues
Collection Account: Hard Lock box
Removal of Manager:
o Event of a default
o DCSR drops below 1.15X.
Reporting Requirements:
o Certified monthly and quarterly property operating statements
o Annual audited financial statements
- --------------------------------------------------------------------------------
[LOGO] NOMURA Prospective investors are advised to carefully
12/3/96 DIRECT.DOC read, and should rely solely on, the final
BF by JFS S-24 prospectus and prospectus supplement (the "Final
RP S-8 Prospectus") relating to the securities referred
to herein in making their investment decision.
This Structural and Collateral Term Sheet does not
include all relevant information relating to the
securities and collateral described herein,
particularly with respect to the risks and special
considerations associated with an investment in
such securities. All structure and collateral
information contained herein is preliminary and it
is anticipated that such information will change.
Any information contained herein will be more
fully described in, and will be fully superseded
by, the description of the collateral and
structure in the prospectus supplement and Final
Prospectus. Although the information contained in
this Structural and Collateral Term Sheet is based
on sources which Nomura Securities International,
Inc. ("Nomura") believes to be reliable, Nomura
makes no representation or warranty that such
information is accurate or complete. Such
information should not be viewed as projections,
forecasts, predictions or opinions with respect to
value, the actual rate or timing of principal
payments or prepayments on the underlying assets
or the performance characteristics of the
securities. Nomura and its affiliates may in the
future have a position in the securities discussed
herein and may purchase or sell the same on a
principal basis or as agent for another person. In
addition, Nomura may act as an underwriter of such
securities, and Nomura and certain of its
affiliates may currently be providing investment
banking and other services to the issuer of such
securities and the borrowers described herein and
their affiliates. Prior to making any investment
decision, a prospective investor shall receive and
fully review the Final Prospectus. NOTHING HEREIN
SHOULD BE CONSIDERED AN OFFER TO SELL OR
SOLICITATION OF AN OFFER TO BUY ANY SECURITIES.
All appraised values were obtained from appraisals
conducted within the past year.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<S> <C> <C>
====================================================================================================================================
NOMURA SECURITIES INTERNATIONAL, INC. (212) 667-1545 Commercial Mortgage-Backed Securities
====================================================================================================================================
MegaDealSM VI - $896,300,000 All information as of
Collateral Term Sheet 12/02/96 11:48 AM unless
otherwise noted.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
================================================================================
Marriott
================================================================================
Principal Amount: $266,000,000
Origination Date: September 23, 1996
Interest Rate: 8.22%
Amortization: 12 Mos. IO then
240 Mos. Amort Schedule
Effective Maturity: 132 Months
Call Protection: Locked out for Eff. Term
Release of Collateral:
o Defeasance of 125% of the allocated loan balance except that with respect
to a sale of Santa Clara the excess over the allocated loan balance will
not exceed the sale proceeds.
o DSCR must be greater than the initial DSCR and the DSCR immediately
preceding the release.
Net Cash Flow: $55,876,956
Adjusted as of 9/6/96
Debt Service Coverage Ratio: 2.06X
Appraised Value: $540,400,000
Loan to Value: 49%
Loan Per Room: $77,983
The Borrower:
o The borrowers are two special purpose limited partnerships substantially
controlled by Host Marriott.
o Host Marriott owns 45 "Marriott" hotels, 54 "Courtyard" hotels, 18
"Residence Inns" and 4 "Fairfield Inns". They are also the general partner
in over 265 other hotels.
o Marriott Hotel Properties II LP ("MHPII") is the borrower of $222,500,000
and Santa Clara Marriott Hotel LP ("Santa Clara LP") is the borrower of
$43,500,000.
o Santa Clara LP owns the Santa Clara hotel and MHPII owns the other three
hotels.
Cross-Collateralization/Default:
Both loans are fully cross-defaulted. The Santa Clara LP loan is fully cross
collateralized by the liens on all four properties. The MHPII loan is secured by
liens on the three hotels owned by MHPII and by a pledge of MHP II's 50%
interest in Santa Clara LP.
The Properties:
Allocated
Property State Rooms Year Built Loan Amount
- --------------------------------------------------------------------------------
Marriott A LA 1,290 1972/78 $106,000,000
- --------------------------------------------------------------------------------
Marriott B TX 999 1988 $102,000,000
- --------------------------------------------------------------------------------
Marriott C CA 754 1976/78/91 $43,500,000
- --------------------------------------------------------------------------------
Marriott D CA 368 1989 $14,500,000
- --------------------------------------------------------------------------------
Totals: 3,411 $266,000,000
- --------------------------------------------------------------------------------
Occ. Occ. Occ. U/W ADR ADR ADR U/W
Prop. 1994 1995 1996 Occ. 1994 1995 1996 ADR
- --------------------------------------------------------------------------------
A 79% 78% 77% 77% 117.38 120.30 125.08 125.08
- --------------------------------------------------------------------------------
B 81% 85% 85% 82% 123.44 127.66 131.21 131.21
- --------------------------------------------------------------------------------
C 77% 79% 81% 78% 92.08 103.63 113.48 113.48
- --------------------------------------------------------------------------------
D 72% 82% 84% 80% 89.99 89.03 94.47 94.47
- --------------------------------------------------------------------------------
Totl: 78% 81% 81% 79% 110.61 115.40 121.00 121.01
- --------------------------------------------------------------------------------
TTM NOI as UW Cash
Property 1994 NOI 1995 NOI of 9/96 flow
- --------------------------------------------------------------------------------
Marriott A 20,633,387 21,320,119 25,521,722 $22,222,690
- --------------------------------------------------------------------------------
Marriott B 17,380,857 20,668,037 23,245,748 $18,892,229
- --------------------------------------------------------------------------------
Marriott C 8,695,048 10,806,662 13,903,767 $11,415,114
- --------------------------------------------------------------------------------
Marriott D 2,880,384 3,174,765 4,554,755 $3,346,924
- --------------------------------------------------------------------------------
49,589,676 55,969,583 67,225,992 $55,876,956
- --------------------------------------------------------------------------------
Management:
o The hotels are managed by Marriott Hotel Services, Inc., a subsidiary of
Marriott International.
- --------------------------------------------------------------------------------
[LOGO] NOMURA Prospective investors are advised to carefully
12/3/96 DIRECT.DOC read, and should rely solely on, the final
BF by JFS S-24 prospectus and prospectus supplement (the "Final
RP S-8 Prospectus") relating to the securities referred
to herein in making their investment decision.
This Structural and Collateral Term Sheet does not
include all relevant information relating to the
securities and collateral described herein,
particularly with respect to the risks and special
considerations associated with an investment in
such securities. All structure and collateral
information contained herein is preliminary and it
is anticipated that such information will change.
Any information contained herein will be more
fully described in, and will be fully superseded
by, the description of the collateral and
structure in the prospectus supplement and Final
Prospectus. Although the information contained in
this Structural and Collateral Term Sheet is based
on sources which Nomura Securities International,
Inc. ("Nomura") believes to be reliable, Nomura
makes no representation or warranty that such
information is accurate or complete. Such
information should not be viewed as projections,
forecasts, predictions or opinions with respect to
value, the actual rate or timing of principal
payments or prepayments on the underlying assets
or the performance characteristics of the
securities. Nomura and its affiliates may in the
future have a position in the securities discussed
herein and may purchase or sell the same on a
principal basis or as agent for another person. In
addition, Nomura may act as an underwriter of such
securities, and Nomura and certain of its
affiliates may currently be providing investment
banking and other services to the issuer of such
securities and the borrowers described herein and
their affiliates. Prior to making any investment
decision, a prospective investor shall receive and
fully review the Final Prospectus. NOTHING HEREIN
SHOULD BE CONSIDERED AN OFFER TO SELL OR
SOLICITATION OF AN OFFER TO BUY ANY SECURITIES.
All appraised values were obtained from appraisals
conducted within the past year.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<S> <C> <C>
====================================================================================================================================
NOMURA SECURITIES INTERNATIONAL, INC. (212) 667-1545 Commercial Mortgage-Backed Securities
====================================================================================================================================
MegaDealSM VI - $896,300,000 All information as of
Collateral Term Sheet 12/02/96 11:48 AM unless
otherwise noted.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Up Front Reserves: $7,037,500
$1,003,775 in deferred maintenance and environmental reserves was funded at
closing. The remaining funds are to be used for ongoing capital expenditures,
replacement reserves and for renovations on the New Orleans property.
On-Going Cap. Ex. Reserve: 5% of annual revenues
The San Antonio and San Ramon hotels require 4% of annual reserves for the next
two years and 5% thereafter.
Collection Account: Two month Debt Service
reserve required as long as Marriott rating remains "A". If rating drops to
"A-", three month Debt Service reserve required. If rating drops to "BBB", hard
lockbox put in place.
Reporting Requirements:
o Certified quarterly operating statements
o Annual audited financial statements
- --------------------------------------------------------------------------------
[LOGO] NOMURA Prospective investors are advised to carefully
12/3/96 DIRECT.DOC read, and should rely solely on, the final
BF by JFS S-24 prospectus and prospectus supplement (the "Final
RP S-8 Prospectus") relating to the securities referred
to herein in making their investment decision.
This Structural and Collateral Term Sheet does not
include all relevant information relating to the
securities and collateral described herein,
particularly with respect to the risks and special
considerations associated with an investment in
such securities. All structure and collateral
information contained herein is preliminary and it
is anticipated that such information will change.
Any information contained herein will be more
fully described in, and will be fully superseded
by, the description of the collateral and
structure in the prospectus supplement and Final
Prospectus. Although the information contained in
this Structural and Collateral Term Sheet is based
on sources which Nomura Securities International,
Inc. ("Nomura") believes to be reliable, Nomura
makes no representation or warranty that such
information is accurate or complete. Such
information should not be viewed as projections,
forecasts, predictions or opinions with respect to
value, the actual rate or timing of principal
payments or prepayments on the underlying assets
or the performance characteristics of the
securities. Nomura and its affiliates may in the
future have a position in the securities discussed
herein and may purchase or sell the same on a
principal basis or as agent for another person. In
addition, Nomura may act as an underwriter of such
securities, and Nomura and certain of its
affiliates may currently be providing investment
banking and other services to the issuer of such
securities and the borrowers described herein and
their affiliates. Prior to making any investment
decision, a prospective investor shall receive and
fully review the Final Prospectus. NOTHING HEREIN
SHOULD BE CONSIDERED AN OFFER TO SELL OR
SOLICITATION OF AN OFFER TO BUY ANY SECURITIES.
All appraised values were obtained from appraisals
conducted within the past year.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<S> <C> <C>
====================================================================================================================================
NOMURA SECURITIES INTERNATIONAL, INC. (212) 667-1545 Commercial Mortgage-Backed Securities
====================================================================================================================================
MegaDealSM VI - $896,300,000 All information as of
Collateral Term Sheet 12/02/96 11:48 AM unless
otherwise noted.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Columbia Sussex
---------------
Original Current
-------- -------
Principal Balance: $136,000,000 $135,230,640
Origination Date: August 8, 1996
Interest Rate: 8.87%
Amortization: 240 months
Effective Maturity: 180 months
Call Protection: Locked out for Eff. Term
Release of Collateral:
o Defeasance of 125% of the allocated loan balance
o DSCR greater than the initial DSCR and the DSCR
immediately preceding the release.
Net Cash Flow: $24,808,887
Adjusted as of 8/96
Debt Service Coverage Ratio: 1.71X
Appraised Value: $239,000,000
Loan to Value: 57%
Cross-Collateralization/Default: Fully Crossed
The Borrower:
The borrower, Grandview Hotel Limited Partnership, is a bankruptcy remote,
special purpose limited partnership substantially controlled by Columbia Sussex
Corporation.
The Collateral:
o The collateral consists 12 full service hotels containing
3,588 rooms geographically diversified in 8 states.
o The franchises are strong national franchises including
Marriott , Radisson , Holiday Inn and Best Western.
Management:
o Columbia Sussex Corp., an experienced hotel operator
founded in 1972. As of 9/96, the manager and its
affiliates own and operate 43 hotels containing over
10,800 rooms.
o William Yung is the President, CEO and sole voting
shareholder of the manager.
Up Front Reserves: $8,000,000
On-Going Cap. Ex. Reserve: 4% of total revenues
Collection Account: Hard Lockbox
Removal of Manager:
o Event of a default
o DCSR drops below 1.10X
o Management fee suspended if DSCR drops below 1.40X
Reporting Requirements:
o Certified monthly property operating statements
o Annual audited financial statements
<TABLE>
<CAPTION>
Allocated Loan Year Built/ Appraised
Property Location Amounts Renovated Value Rooms
--------- -------- ------- --------- ---------- -----
<S> <C> <C> <C> <C> <C>
Holiday Inn Springfield Springfield, Ohio 3,181,897 1973/85 5,400,000 150
Holiday Inn Southfield (Detroit) Southfield, Michigan 11,295,736 1965/83 22,000,000 417
Holiday Inn Louisville South Airport Louisville, Kentucky 11,454,831 1960/85 16,600,000 405
Holiday Inn Glen Ellyn Glen Ellyn, Illinois 1,590,949 1967/86 3,700,000 121
Holiday Inn Itasca Itasca, Illinois 5,091,036 1968/86 8,800,000 161
Best Western Eastgate Kissimmee, Florida 9,068,408 1982 12,400,000 403
Radisson Hotel Central Birmingham Birmingham, Alabama 6,125,153 1972 11,000,000 298
Radisson Lake Buena Vista Vista Center, Florida 7,238,817 1989 14,600,000 200
Radisson Hotel Orlando Airport Orlando, Florida 15,432,202 1990 30,300,000 347
Radisson Hotel Cincinnati Airport Boone County, Kentucky 11,852,568 1960/86 19,300,000 214
Sheraton Hotel Newark Airport Newark, New Jersey 25,693,822 1989 42,600,000 501
Melville Marriott Melville, New York 27,205,223 1990 52,300,000 371
------------ ------- ------------ -----
$135,230,640 $239,000,000 3,588
</TABLE>
- --------------------------------------------------------------------------------
[LOGO] NOMURA Prospective investors are advised to carefully
12/3/96 DIRECT.DOC read, and should rely solely on, the final
BF by JFS S-24 prospectus and prospectus supplement (the "Final
RP S-8 Prospectus") relating to the securities referred
to herein in making their investment decision.
This Structural and Collateral Term Sheet does not
include all relevant information relating to the
securities and collateral described herein,
particularly with respect to the risks and special
considerations associated with an investment in
such securities. All structure and collateral
information contained herein is preliminary and it
is anticipated that such information will change.
Any information contained herein will be more
fully described in, and will be fully superseded
by, the description of the collateral and
structure in the prospectus supplement and Final
Prospectus. Although the information contained in
this Structural and Collateral Term Sheet is based
on sources which Nomura Securities International,
Inc. ("Nomura") believes to be reliable, Nomura
makes no representation or warranty that such
information is accurate or complete. Such
information should not be viewed as projections,
forecasts, predictions or opinions with respect to
value, the actual rate or timing of principal
payments or prepayments on the underlying assets
or the performance characteristics of the
securities. Nomura and its affiliates may in the
future have a position in the securities discussed
herein and may purchase or sell the same on a
principal basis or as agent for another person. In
addition, Nomura may act as an underwriter of such
securities, and Nomura and certain of its
affiliates may currently be providing investment
banking and other services to the issuer of such
securities and the borrowers described herein and
their affiliates. Prior to making any investment
decision, a prospective investor shall receive and
fully review the Final Prospectus. NOTHING HEREIN
SHOULD BE CONSIDERED AN OFFER TO SELL OR
SOLICITATION OF AN OFFER TO BUY ANY SECURITIES.
All appraised values were obtained from appraisals
conducted within the past year.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<S> <C> <C>
====================================================================================================================================
NOMURA SECURITIES INTERNATIONAL, INC. (212) 667-1545 Commercial Mortgage-Backed Securities
====================================================================================================================================
MegaDealSM VI - $896,300,000 All information as of
Collateral Term Sheet 12/02/96 11:48 AM unless
otherwise noted.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------
Net Cash Flow
------------------------------------------------------------------------
Property U/W TTM (8/96) 1995 1994
-------- --- ---------- ---- ----
<S> <C> <C> <C> <C>
Holiday Inn Springfield $ 600,371 $ 891,994 $ 1,003,059 $ 1,021,383
Holiday Inn Southfield (Detroit) 1,796,110 2,295,303 2,210,815 1,669,576
Holiday Inn Louisville South Airport 2,140,369 2,714,086 2,718,739 2,908,147
Holiday Inn Glen Ellyn 267,642 441,891 536,543 453,883
Holiday Inn Itasca 889,110 1,179,821 1,091,127 908,756
Best Western Eastgate 1,753,706 2,226,389 1,825,369 1,269,130
Radisson Hotel Central Birmingham 1,283,036 1,702,904 1,458,414 1,101,662
Radisson Lake Buena Vista 1,467,580 1,826,273 1,420,576 1,164,584
Radisson Hotel Orlando Airport 3,013,682 3,677,240 3,011,928 2,273,808
Radisson Hotel Cincinnati Airport 2,172,494 2,628,730 2,234,811 2,133,954
Sheraton Hotel Newark Airport 4,404,544 6,355,777 5,752,281 5,673,882
Melville Marriott 5,020,244 6,652,104 6,187,173 4,649,783
----------- ----------- ----------- -----------
$24,808,887 $32,592,512 $29,450,835 $25,228,548
</TABLE>
<TABLE>
<CAPTION>
Occupancy ADR
--------- ---
Property TTM TTM
-------- U/W (8/96) 1995 1994 U/W (8/96) 1995 1994
--- ------ ---- ---- --- ------ ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Holiday Inn Springfield 53% 57% 64% 71% $ 61.66 $ 61.66 $ 57.81 $ 54.15
Holiday Inn Southfield (Detroit) 44% 44% 48% 42% $ 65.75 $ 65.75 $ 61.06 $ 57.53
Holiday Inn Louisville South Airport 58% 58% 55% 61% $ 60.75 $ 60.75 $ 59.25 $ 55.69
Holiday Inn Glen Ellyn 56% 57% 56% 56% $ 58.15 $ 58.15 $ 53.62 $ 46.21
Holiday Inn Itasca 58% 58% 58% 55% $ 66.99 $ 66.99 $ 61.97 $ 58.24
Best Western Eastgate 70% 71% 70% 54% $ 41.04 $ 41.04 $ 37.18 $ 38.99
Radisson Hotel Central Birmingham 61% 61% 57% 49% $ 56.67 $ 56.67 $ 55.06 $ 51.50
Radisson Lake Buena Vista 75% 75% 74% 65% $ 70.19 $ 70.19 $ 61.12 $ 62.83
Radisson Hotel Orlando Airport 80% 80% 75% 67% $ 58.13 $ 58.13 $ 53.03 $ 51.16
Radisson Hotel Cincinnati Airport 73% 73% 66% 70% $ 66.40 $ 66.40 $ 66.21 $ 62.28
Sheraton Hotel Newark Airport 75% 83% 70% 77% $ 69.26 $ 69.26 $ 72.44 $ 65.91
Melville Marriott 72% 72% 70% 62% $107.60 $107.60 $102.08 $ 92.62
Weighted Average: 66% 67% 64% 61% $ 65.65 $ 65.65 $ 62.69 $ 59.01
</TABLE>
- --------------------------------------------------------------------------------
[LOGO] NOMURA Prospective investors are advised to carefully
12/3/96 DIRECT.DOC read, and should rely solely on, the final
BF by JFS S-24 prospectus and prospectus supplement (the "Final
RP S-8 Prospectus") relating to the securities referred
to herein in making their investment decision.
This Structural and Collateral Term Sheet does not
include all relevant information relating to the
securities and collateral described herein,
particularly with respect to the risks and special
considerations associated with an investment in
such securities. All structure and collateral
information contained herein is preliminary and it
is anticipated that such information will change.
Any information contained herein will be more
fully described in, and will be fully superseded
by, the description of the collateral and
structure in the prospectus supplement and Final
Prospectus. Although the information contained in
this Structural and Collateral Term Sheet is based
on sources which Nomura Securities International,
Inc. ("Nomura") believes to be reliable, Nomura
makes no representation or warranty that such
information is accurate or complete. Such
information should not be viewed as projections,
forecasts, predictions or opinions with respect to
value, the actual rate or timing of principal
payments or prepayments on the underlying assets
or the performance characteristics of the
securities. Nomura and its affiliates may in the
future have a position in the securities discussed
herein and may purchase or sell the same on a
principal basis or as agent for another person. In
addition, Nomura may act as an underwriter of such
securities, and Nomura and certain of its
affiliates may currently be providing investment
banking and other services to the issuer of such
securities and the borrowers described herein and
their affiliates. Prior to making any investment
decision, a prospective investor shall receive and
fully review the Final Prospectus. NOTHING HEREIN
SHOULD BE CONSIDERED AN OFFER TO SELL OR
SOLICITATION OF AN OFFER TO BUY ANY SECURITIES.
All appraised values were obtained from appraisals
conducted within the past year.
- --------------------------------------------------------------------------------
<PAGE>
