EuroSail NL 2007-2 lacks funding for mortgage-backed notes’ put option

By Angela McDaniels

Tacoma, Wash., Aug. 8 – Eurosail-NL 2007-2 BV announced an Oct. 17 put option for its mortgage-backed floating-rate notes due October 2040, but the issuer does not expect to have enough funds to redeem any notes put back to it, according to a filing with the London Stock Exchange.

The put option is for the issuer’s €280 million class A notes, €22.05 million class M notes, €25.2 million class B notes, €11,375,000 class C notes and €11,375,000 class D1 notes.

The issuer said it received a letter from the seller stating that the seller, until further notice, does neither purchase nor accept assignment of any mortgage receivables on the Oct. 17 put option date or any subsequent put option date.

The put option is subject to acceptance by the seller or a third party of the repurchase of an equivalent amount of mortgage loans.

In the current market circumstances, the issuer does not expect to succeed in finding any third party that would be interested in purchasing mortgage receivables outstanding against the relevant purchase price by Oct. 17. Consequently, the issuer does not expect to have enough funds to buy back any notes.

In the light of this expectation and in order to avoid that notes would unnecessarily be blocked for trading from the moment of exercise of the put option up to the put date, notes for which put options are exercised will not be subject to blocking up to the put date.

The issuer said that noteholders who had intended to exercise the put option had the issuer been in a position to honor such exercise should deliver put option notices. The period to exercise the put option is from Aug. 8 to Aug. 30.

Under the terms and conditions of the notes, Lehman Brothers International (Europe), or any issuer belonging to the same group of companies, does not have the right to exercise the put option.

The issuer is based in Amsterdam. Its director is Intertrust Management BV.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.