CMBS; Lords 1; Consent Solicitation; London & Regional; London & Regional Debt Securitisation No.1 PLC;

In December 2012, Reed Smith’s Structured Finance Team completed the consensual restructuring of £362,452,000 of outstanding debt owed by the London & Regional Group (the property company of billionaires Ian and Richard Livingstone).  As the managing associate on the team that advised London & Regional in various capacities (including Issuer and Borrower), I thought it would be worth touching on some of the innovative structural features, the benefits of this CMBS restructuring and the implications that this has for the CMBS restructuring market as a whole.

This was a highly complex transaction that featured: (i) the consensual restructuring of £234,200,000 of tranched commercial mortgage backed securities issued by London & Regional Debt Securitisation No.1 PLC (Lords 1); (ii) the restructuring of a £128,252,500 contractually subordinated loan; (iii) the compression of a long-dated interest rate swap; (iv) the termination of a liquidity facility; and (v) the implementation of innovative structural enhancements to the London & Regional Group structure that assured the noteholders of the independence of the Issuer whilst maintaining the London & Regional Group ownership of the note issuing vehicle.
Continue Reading LORDS 1 – ON A WING AND A PRAYER