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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 20, 1996
SALOMON BROTHERS MORTGAGE SECURITIES VII, INC.
(as depositor under the Pooling and Servicing Agreement, dated as
of February 1, 1996, providing for the issuance of Mortgage
Pass-Through Certificates, Series 1996-C1
Salomon Brothers Mortgage Securities VII, Inc.
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(Exact name of registrant as specified in its charter)
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<S> <C> <C>
Delaware 33-84924 13-3439681
---------------------------- ------------ ---------------------
(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification Number)
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<TABLE>
<S> <C>
Seven World Trade Center
New York, New York 10048
(Address of Principal Zip Code)
Executive Offices)
</TABLE>
Registrant's telephone number, including area code: (212) 783-5638
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Item 5. Other Events.
On February 29, 1996, the Registrant expects to cause the
issuance and sale of Mortgage Pass-Through Certificates, Series 1996-C1
(the "Certificates") pursuant to a Pooling and Servicing Agreement, to
be dated as of February 1, 1996, among the Registrant, Midland Loan
Services, L.P. as Master Servicer and Special Servicer, LaSalle
National Bank as Trustee and ABN AMRO BANK, N.V. as Fiscal Agent.
In connection with the expected sale of the Certificates,
Salomon Brothers Inc (the "Underwriter") has advised the Registrant
that it has furnished to prospective investors certain collateral
information with respect to the mortgage loans underlying the proposed
offering of the Certificates (the "Collateral Term Sheets"), which
Collateral Term Sheets are being filed manually as exhibits to this
report.
The Collateral Term Sheets have been provided by the
Underwriter. The information in the Collateral Term Sheets is
preliminary and will be superseded by the Prospectus Supplement
relating to the Certificates and by any other information subsequently
filed with the Securities and Exchange Commission.
The Collateral Term Sheets were prepared by the Underwriter at
the request of certain prospective investors. The Collateral Term
Sheets may be based on information that differs from the information
set forth in the Prospectus Supplement.
In addition, the actual characteristics and performance of the
mortgage loans underlying the Certificates may differ from the
information provided in the Collateral Term Sheets, which were provided
to certain investors only to give a sense of the underlying collateral
which will effect the maturity, interest rate sensitivity and cash flow
characteristics of the Certificates. Any difference between the
collateral information in the Collateral Term Sheets and the actual
characteristics of the mortgage loans will affect the actual yield,
average life, duration, expected maturity, interest rate sensitivity
and cash flow characteristics of the Certificates.
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Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(a) Financial Statements.
Not applicable.
(b) Pro Forma Financial Information.
Not applicable.
(c) Exhibits
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<CAPTION>
Item 601(a) of
Regulation S-K
Exhibit No. Exhibit No. Description
- ----------- -------------- ---------------------
<S> <C> <C>
1 99 Collateral Term Sheets
</TABLE>
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SALOMON BROTHERS MORTGAGE
SECURITIES VII, INC.
By: /s/ Ian McColough
Ian McColough
Assistant Vice President
Dated: February 20, 1996
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EXHIBIT INDEX
<TABLE>
<CAPTION>
Item 601 (a) of
Exhibit Regulation S-K
Number Exhibit No. Description
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<S> <C> <C>
1 99 Collateral Term Sheets
</TABLE>
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Salomon Brothers Mortgage Securities VII, INC.
Mortgage Pass-Through Certificates
Series 1996-C1
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SALOMON CONTACTS: TRADING PAUL OR JEFF 212-783-3659
FINANCE IAN MCCOLOUGH 212-783-5638
ANGELA HUTZEL 212-783-5664
ANALYTICS TONY LUPO 212-783-5838
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Summary
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<TABLE>
<CAPTION>
Expected Structure: Approx
Estimated Pass PRELIMINARY PAYMENT
Security (FITCH/S&P) Credit Estimated Avg. Thru. TARGETED PRICE WINDOW
Class Rating* Support Class Size Life* Rate DOLLAR PX TALK Distrib. BEG END
- ------ --------- ----------- ---------- ---------- ------ --------- ----- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
A1 AAA/AAA 38.00% 50,000,000 3.55 yrs TBA 101 75-80 Public 1 67
A2 AAA/AAA 38.00% 81,500,000 6.28 TBA 101 85-90 Public 67 105
IO AAA FITCH ONLY - - - TBA Private-144A
B AA/AA 31.00 14,800,000 9.34 TBA 101 105-110 Public 105 115
C A/A 24.00 14,800,000 9.71 TBA 101 125-130 Public 115 116
D BBB/BBB 19.50 9,600,000 9.76 TBA 101 170-175 Public 116 119
E BB/BB 9.50 21,200,000 9.97 TBA Pvt-144A 119 119
F B-/B 4.25 11,100,000 9.97 TBA Pvt-144A 118 119
G NR ---- 9,000,000 4.44 TBA Pvt-144A 1 118
-----------
212,000,000
</TABLE>
* Calculated assuming (i) no voluntary or involuntary prepayments, (ii) no
extensions of a mortgage loan maturity and (iii) no optional termination.
<TABLE>
<CAPTION>
Mortage Pool:
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<S> <C> <C> <C>
No. of loans: 43 Approx. Gross WAC (range): 9.26%
[7.95-11.16%]
Feb. 1, 1996 Bal (approx) $212 million Approx. Net WAC (range): 9.19%
[7.88-11.09%]
Fixed Rate Loans: 100% Approx. WAM (range): 88 mos
[7/1/98-1/1/06]
Wtd. Avg. DSCR (range) 1.37 Wtd. Avg. LTV (range): 67.0%
[1.12x-2.79x] [45-75%]
</TABLE>
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<TABLE>
<CAPTION>
Property Type: % of Total Geographic Location: % of Total
__________________________________ __________________________________
<S> <C> <C> <C>
Multifamily 34.5% GA 22.5%
Retail 31.3 TX 13.7
Office 1.8 FL 13.3
Industrial 2.6 WA 12.7
Hotel 11.4 NJ 10.6
Other 18.4 Other 27.2
----- -----
100.0% 100.0%
</TABLE>
<TABLE>
<CAPTION>
Prepayment Penalties: %of Total
_________________________________________________________
<S> <C>
Lockout then yld mtn. 30.4%
Lockout then greater of 1%/yld mt. 25.3
Yld. Mtn. then declining pct. 15.4
Greater of 1%/Yld Mtn then decl penalty 12.0
Yield Maintenance 11.4
Lockout then declining pct. 5.5
-------
100.0%
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<TABLE>
<S> <C>
Certificate Interest: On each Distribution Date, each Class of Certificates will be
entitled to receive interest distributions in an amount equal
to the Interest Distribution Amount (as defined in the prospectus
supplement) together with any interest shortfalls remaining unpaid from
prior Distribution Dates, in each case to the extent of
available funds after (i) payment of the Interest Distribution
Amount and interest shortfall for each other outstanding
Class of Certificates having an earlier alphabetical class
designation and (ii) payment of the Principal Distribution
Amount for such Distribution Date to each
outstanding Class of Certificates having an earlier sequential
designation.
Certificate Principal: The Principal Distribution Amount for each Distribution Date
will be distributed, first, to the Class A1 Certificates, until
the Certificate Balance thereof has been reduced to zero and
thereafter, sequentially to each other Class of Certificates in
alphabetical order of class designation until its Certificate
Balance is reduced to zero, in each case, to the extent of
available funds remaining afer required distributions of
interest to such Class and interest and principal payable to
any other outstanding Class which has an equal or higher
distribution priority.
Master Servicer: Midland Loan Services, L.P.
Special Servicer: Midland Loan Services, L.P. or other designated party
Trustee: La Salle National Bank
Fiscal Agent: ABN AMRO Bank N.V.
Distribution Date: 20th business day of each month
commencing March 18, 1996
Cut-Off Date: February 1, 1996
Closing Date: February 29, 1996
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<S> <C>
Tax Status: Triple REMIC
Delivery: Public: Book Entry through DTC
Private: Physical
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____________________________
Debt Service Coverage Ratio
____________________________
<TABLE>
<CAPTION>
DSCR # Sum of Loan Bal % of Total Cum %
------------------- --- --------------- ------ ------
<S> <C> <C> <C> <C>
1.10 to 1.20 4 $ 10,661,311 5.03% 5.03
1.20 to 1.30 10 95,398,118 44.99 50.02
1.30 to 1.40 14 56,138,509 26.47 76.49
1.40 to 1.50 4 14,917,639 7.04 83.53
1.50 to 1.60 5 9,774,681 4.61 88.14
1.60 to 1.70 0 0 0.00 88.14
1.70 to 1.80 5 21,778,841 10.27 98.41
> 1.80 1 3,376,535 1.59 100.00
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TOTALS: 43 $212,045,634 100.00%
</TABLE>
Weighted Avg DSCR: 1.37 Range: 1.12x - 2.82x
____________________________
Loan to Value
____________________________
<TABLE>
<CAPTION>
LTV # Sum of Loan Bal % of Total
------------------- --- --------------- ----------
<S> <C> <C> <C>
45 to 50 1 $ 3,376,535 1.59%
50 to 55 3 10,277,868 4.85
55 to 60 4 10,866,884 5.12
60 to 65 6 25,118,602 11.85
65 to 70 12 88,869,768 41.83
70 to 75 17 73,715,976 34.76
--- ------------ -------
TOTALS: 45 $212,045,634 100.00%
</TABLE>
Weighted Avg LTV : 66.96% Range: 45% to 75%
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Current Coupon
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<TABLE>
<CAPTION>
Coupon # Sum of Loan Bal % of Total
--------------- --- --------------- ----------
<S> <C> <C> <C>
7.50 to 8.00% 1 $ 3,376,535 1.59%
8.00 to 8.50 3 38,868,662 18.33
8.50 to 9.00 12 65,800,868 31.03
9.00 to 9.50 5 26,129,747 12.32
9.50 to 10.00 9 32,682,335 15.41
10.00 to 10.50 5 12,343,297 5.82
10.50 to 11.00 6 24,995,439 11.79
11.00 to 11.50 2 7,848,751 3.70
--- ------------ ------
43 $212,045,634 100.00%
</TABLE>
Weighted Avg Coup: 9.256% Range: 7.95% to 11.16%
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_______________________________
Property Type
_______________________________
<TABLE>
<CAPTION>
Property Type # Sum of Loan Bal % of Total
------------- -- --------------- ----------
<S> <C> <C> <C>
Multi Family 21 $ 73,154,562 34.50%
Retail 12 66,397,916 31.31
Office/Ind. 1 28,276,818 13.34
Hotel 5 24,244,468 11.43
Industrial 2 10,825,137 5.11
Retail/Office 1 5,425,637 2.56
Office 1 3,721,096 1.75
--- ------------ -------
43 $212,045,634 100.00%
</TABLE>
_______________________________
Maturity Date
_______________________________
<TABLE>
<CAPTION>
Maturity Date # Sum of Loan Bal % of Total
-------------- -- --------------- ----------
<S> <C> <C> <C>
1998 1 $ 11,623,738 5.48%
1999 2 6,257,124 2.95
2000 2 12,363,480 5.83
2001 14 50,571,616 23.85
2002 6 29,589,034 13.95
2003 1 4,695,446 2.21
2004 1 4,426,949 2.09
2005 12 49,053,861 23.13
2006 4 43,464,385 20.50
--- ------------ ------
43 $212,045,634 100.00%
</TABLE>
Weighted Average Maturity: 88 months Range: July 1, 1998 to January 1, 2006
_______________________________
State
_______________________________
<TABLE>
<CAPTION>
State # Sum of Loan Bal % of Total
------ -- -------------- ----------
<S> <C> <C> <C>
GA 11 $ 47,729,859 22.51%
TX 9 28,950,583 13.65
WA 1 28,276,818 13.34
NJ 4 26,930,810 12.70
FLA 4 22,417,866 10.57
NV 1 11,745,454 5.54
KS 2 8,553,770 4.03
NE 1 6,002,015 2.83
CT 1 5,539,426 2.61
NY 3 5,527,686 2.61
TN 1 4,849,310 2.29
AZ 1 4,597,097 2.17
OK 1 3,646,390 1.72
SC 1 3,400,148 1.60
MD 1 2,536,028 1.20
LA 1 1,342,375 0.63
--- --------------- ----------
43 $212,045,634 100.00%
</TABLE>
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________________________________
Originator
________________________________
<TABLE>
<CAPTION>
Originator # Sum of Loan Bal % of Total
---------- -- --------------- ----------
<S> <C> <C> <C>
RFG Financial, Inc. 14 $ 76,679,655 36.16%
Greenwich Capital Financial
Products Inc. 17 53,010,985 25.00
Salomon Bros Realty Corp 7 57,117,009 26.94
Union Capital 4 20,143,577 9.50
CapSource 1 5,094,408 2.40
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43 $212,045,634 100.00%
</TABLE>
________________________________
Prepayment Penalty
________________________________
<TABLE>
<CAPTION>
Prepayment Penalties: # SUM OF LOAN BAL. %of Total
--------------------- - ---------------- ---------
<S> <C> <C> <C>
Lockout then yld mtn. 13 64,372,778 30.4%
Lockout then greater of 1%/yld mt. 6 53,699,257 25.3
Yld. Mtn. then declining pct. 12 32,653,851 15.4
Greater of 1%/Yld Mtn then decl penalty 6 25,451,542 12.0
Yield Maintenance 5 24,244,468 11.4
Lockout then declining pct. 1 11,623,738 5.5
-- ---------- -------
43 $212,045,634 100.0%
</TABLE>
DISCLAIMER
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THIS SERIES TERM SHEET CONTAINS STRUCTURAL AND COLLATERAL INFORMATION WITH
RESPECT TO THE SERIES 1996-C1 INVESTOR CERTIFICATES: HOWEVER, THIS SERIES TERM
SHEET DOES NOT CONTAIN COMPLETE INFORMATION WITH RESPECT TO THE OFFERING OF THE
SERIES 1996 C1 INVESTOR CERTIFICATES. THE INFORMATION HEREIN IS PRELIMINARY AND
WILL BE SUPERSEDED BY THE INFORMATION CONTAINED IN THE PROSPECTUS SUPPLEMENT
AND THE PROSPECTUS. ADDITIONAL INFORMATION WILL BE CONTAINED IN THE PROSPECTUS
SUPPLEMENT AND THE PROSPECTUS PURCHASERS ARE URGED TO READ BOTH THE PROSPECTUS
SUPPLEMENT AND THE RPOSPECTUS.
Prospective investors are advised to read carefully, and should rely
solely on, the final prospectus supplement and prospectus ("Final Prospectus")
relating to the Certificates referred to above in making their investment
decision.
The information contained herein is certain of the information set forth in
the preliminary Prospectus Supplement dated February 14, 1996 to the
Prospectus dated February 14, 1996 (collectively, the "Preliminary
Prospectus"), relating to the Salomon Brothers Mortgage Securities VII, Inc.
Mortgage Pass-Through Certificates, Series 1996-C1 (the "Certificates") and
should be reviewed only in conjunction with a careful review of the Preliminary
Prospectus. Such information does not include all information relating to the
structure of the Certificates and does not include all relevant information
relating to the underlying mortgage loans. Such information is set forth in the
Preliminary Prospectus, and particular attention should be paid to the risks and
special considerations associated with an investment in the Certificates
described in the Preliminary Prospectus. The information contained herein
should not be viewed as projections, forecasts, predictions or opinions with
respect to value.
All mortgage loan information contained in this herein is preliminary
and it is anticipated that such information will change. Any information
contained in this herein will be more fully described in, and such information
and the information in the Preliminary Prospectus will be fully superseded by,
the information contained in the Final Prospectus.
Prior to making any investment decision, a prospective investor shall
receive and should carefully review the Final Prospectus. NOTHING LISTED BELOW
SHOULD BE CONSIDERED AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY THE
CERTIFICATES. SALES OF THE CERTIFICATES MAY NOT BE CONSUMMATED UNLESS A
PROSPECTIVE INVESTOR HAS RECEIVED THE FINAL PROSPECTUS.
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