CAPCO AMERICA SECURITIZATION CORPORATION
COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES
SERIES 1998-D7
Supplement, dated October 29, 1998, to Prospectus Supplement dated September 25,
1998.
Pass-Through Rates
Notwithstanding anything to the contrary set forth in the Prospectus Supplement,
the Pass-Through Rates for the Class A-3 and Class A-4 Certificates shall be as
follows:
The Pass-Through Rate for the Class A-3 Certificates for any Distribution Date
will be equal to the lesser of (i) 6.7400% and (ii) the Weighted Average Net
Mortgage Pass-Through Rate for such Distribution Date.
The Pass-Through Rate for the Class A-4 Certificates for any Distribution Date
will be equal to the lesser of (i) 7.2300% and (ii) the Weighted Average Net
Mortgage Pass-Through Rate for such Distribution Date.
In the event of the prepayment of Mortgage Loans having relatively high interest
rates, the Weighted Average Net Mortgage Pass-Through Rate could be lower than
7.2300% or 6.7400%.
Recent Developments
A revised mark-to-market estimate of the value of CCA's assets on September
28, 1998 indicated that the $214 million contributed to CCA was insufficient (by
approximately $150 to $200 million) to restore CCA's capitalization to its July
29, 1998 level (approximately $500 million of shareholder's equity). NHA
subsequently contributed additional equity of another $214 million to CCA, based
on CCA's mark-to-market losses then estimated, sufficient to restore CCA's
shareholder equity to approximately $500 million as of September 30, 1998. On
October 22, 1998, Nomura Securities, Co., Ltd. ("NSC"), NHA's parent, reported
that its consolidated after-tax losses for the six-month period ending September
30, 1998 was $1,504,000,000 and NHA reported it had incurred a pre-tax loss of
$1,160,000,000 for the same period. Following the report of those losses, NSC
made an additional equity investment in NHA in the amount of $1,200,000,000.
There can be no assurance that either CCA or NHA will not experience
further losses, that NSC will provide additional capital to NHA or that NHA will
contribute capital to CCA beyond its current commitment. In addition, current
market uncertainty and volatility have had, and may continue to have, further
significant adverse impact on the financial condition of CCA and NHA.
Exhibit E
Exhibit E to the Prospectus Supplement sets forth the Weighted Average Net
Mortgage Rate (WAC) calculated for the Mortgage Pool for each Distribution Date
based on certain assumptions. Each WAC shown on Exhibit E is 0.005% less than
the actual WAC calculated for each Distribution Date.
