Case in point: supporting a complex CRE repo securitization under tight timelines
For example, through its European Global Corporate Trust team, U.S. Bank offers comprehensive trustee and agent solutions for loan and debt capital market transactions. A U.S. Bank team recently served as corporate trustee for a large asset manager to support the commercial real estate funding solutions on a complex multibillion-dollar transaction.
This was a multi-asset, multi-issuer and multi-currency deal that had to be completed within two weeks. The appointment of the Global Corporate Trust team was for a large repo funding securitization in which underlying commercial real estate loan assets were securitized through a multi-compartment structure.
Even though the transaction had a short lead time, it required the onboarding of multiple issuer vehicles and the opening of a variety of accounts to support the complex cash flows of the deal. A full suite of transaction roles also had to be provided at both a common and currency compartment-specific level.
Multiple teams must be engaged to support such a complex deal, including relationship management, onboarding, legal and analytics. Considerable resources are also required on the analytics side, as well as the need to work efficiently with the sponsor and funding party on the investor reporting requirements. The transaction timing was determined by a regulatory deadline, which created additional time pressure on all parties working on the deal.
Transaction roles assumed by U.S. Bank included:
- Note trustee
- Security trustee
- Account bank
- Cash manager
- Calculation agent
- Paying agent
- Registrar
- Common depository
- Custodian
“Our ability to provide the client with ‘all-hands-on-deck’ service was vital to the successful completion of this deal,” says Theodore.
Issuers, sponsors and law firms alike will find value in a corporate trustee with the resources, scale, expertise and responsiveness needed to complete complex deals within a short timeframe. Visit our European Trustee Solutions page to learn more about our global corporate trust services.