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Gramercy Capital Corp. Message Board

  • plan.maestro plan.maestro Dec 10, 2010 6:32 PM Flag

    CDO 2006 Loan Maturities

    3Q2010 4Q2010 1Q2011 2Q2011 Thereafter Total
    Loan Count
    6 3 4 7 16 36
    CDO Par
    79,197,560 134,894,509 96,791,449 197,821,489 291,306,896 800,011,903
    % of Total
    9.9% 16.9% 12.1% 24.7% 36.4% 100.0%

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    • PS> check the numbers I mention, I pulled them from the top of my head

      First of all, I do not think they are going to loose Realty. KBS has already been open that they are willing to extend if a way is found to resolve their $270m repo with GS and Citi guaranteed by the $450m KBS mezz (KBS has around $100m in cash that can be part of the solution).

      The other $90m junior mezz is partly owned by SLG (only $50m and part of the family) and the extra $40m should not be a problem if all the rest is solved (better protection with capital injection)

      So the issue for GKK is how to solve the $240m mortgage part and the $270m repo. ($510m total).

      With $200 in cash at corporate, $35m in Realty, around $40 coming from operations, the liquidity of the CDOs (that they would have to make room with some sale or security exchange), and some other non encumbered assets (land, CDO notes, prefs) ... why they could not reach an agreement would be beyond me. Just to pay the $240 mortgage in cash would substantially improve the mezz loans protection and actually I would ask KBS and the rest for some principal reduction in addition to the extension.

      Valuation? I do not know. If they save Realty with the cash on hand this could well become a $20 per share over time cash flowing at least $100m between Realty and the CDOs (10% dividend yield), plus all the synergies of having the property administrator and the financing under the same roof, plus a conservative Realty balance sheet that could be leveraged in the future.

      If the Realty negotiations fail, the cash can be used to buy CDO 2005, 2006 notes at a discount (and CMBSs too) increasing cash flow over time. so I think they could become worth around $6 per share between them if we consider the company in run-off.

    • Dec 2010
      Puck Building $60.4 no ext
      Bay Communities $49.0 3x1y ext
      Bascom Multifamily $25.5 no ext

      Feb 2011
      722 12th Street $13 no ext
      Jemal Credit $5.5 no ext
      Atlantic Yards $33.3 1x1y ext
      Mount Holyoke $45 2x1y ext