Seven E-MAC issuers expect to lack funds for Oct. 25 put option

By Sarah Lizee

Olympia, Wash., Aug. 23 – E-MAC Program BV - Compartment NL 2007 NHG-V, E-MAC Program BV - Compartment NL 2006-III, E-MAC Program BV - Compartment NL 2007 NHG-II, E-MAC NL 2006-NHG I BV, E-MAC Program II BV - Compartment NL 2007-IV, E-MAC Program III BV - Compartment NL 2008-II and E-MAC Program II BV - Compartment NL 2008-IV said they do not have funds available to redeem their notes, which were subject to a put date on Oct. 25, according filings with the London Stock Exchange.

Therefore, the issuers said, none of the notes will be redeemed on the put date.

According to the E-MAC issuers, the MPT provider will not, and also does not have the financial means to, grant the servicing advance loan on or before the put date.

Furthermore, the issuers said they doubt that they will succeed in finding any third party that would be willing to purchase mortgage receivables or to provide the servicing advance loan on or before the put date. Consequently, they expect that they will not have sufficient funds available to redeem any notes put back by their holders.

Noteholders who had intended to exercise their put options if E-MAC could fund the redemption or who still wish to exercise their options were advised to do so in the notices.

The issuers said that in light of the expectation that it will not have enough money to fund the put option, any notes for which a put option have been exercised will not be subject to blocking up to the put date.

The Oct. 25 put date applies to

• E-MAC Program BV - Compartment NL 2007’s €250 million senior class A notes due 2041 and €3 million mezzanine class B notes due 2041;

• E-MAC Program BV - Compartment NL 2006-III’s €604.8 million senior class A2 notes 2006 due 2039, €21.6 million mezzanine class B notes due 2039, €12 million junior class C notes due 2039, €10.4 million subordinated class D notes due 2039 and €3.2 million subordinated class E notes due 2039;

• E-MAC Program BV - Compartment NL 2007 NHG-II’s €600 million senior class A notes due 2046 and €7.2 million mezzanine class B notes due 2046;

• E-MAC NL 2006-NHG I BV’s €600 million senior class A notes due 2039 and €5.4 million subordinated class B notes due 2039;

• E-MAC Program II BV - Compartment NL 2007-IV’s €654.85 million senior class A notes due 2048, €16.8 million mezzanine class B notes due 2048, €12.6 million junior class C notes due 2048, €15.75 million subordinated class D notes due 2048 and €2.8 million subordinated class E notes due 2048;

• E-MAC Program III BV - Compartment NL 2008-II’s €10 million senior class A1 notes due 2013, €98 million senior class A2 notes due 2048, €5.25 million mezzanine class B notes due 2048, €1.95 million junior class C notes due 2048, €4.8 million subordinated class D notes due 2048 and €1.65 million subordinated class E notes due 2048; and

• E-MAC Program II BV - Compartment NL 2008-IV’s €230.6 million senior class A notes due 2048, €11.3 million mezzanine class B notes due 2048, €2.8 million junior class C notes due 2048, €11.55 million subordinated class D notes due 2048, €6.9 million subordinated class E notes due 2048 and €50,000 subordinated class F notes due 2048.

Deutsche Bank AG, London Branch (+44 20 7545 8273 or abs.mbs.london@list.db.com) is the principal paying agent. The director of the issuer is Intertrust Management BV (emac@intertrustgroup.com).

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