-- Daniel O’Leary
Senior and junior noteholders of the £284.9 million ($446.4 million) Draco (Eclipse 2005-4) commercial mortgage securitization will be partially prepaid on the next payment date, according to a CMBS analyst. The prepayment follows the successful sale of 1 Trafalgar Square, London, on Aug. 10. That property secures a loan backing 36.8% of Draco’s pool.
About £95 million ($148.9 million) will be made available to the senior class, while the junior noteholders will receive a total of £25 million ($39.2 million). The prepayments will be issued on the Oct. 25 and will be applied 50% sequential and 50% pro-rata across all classes of notes, according to the issuer.
The properties were sold to an unidentified Russian investor for £172 million ($269.6 million) last week. They had belonged to Dubai-based investment firm Dubai Istithmar World.
The CMBS analyst said the prepayment will reduce the principal by about 42% for class As and 23% for classes B, C, D, E and F. Three other loans now back Draco, with one – the Flintstone Portfolio – accounting for over 88% of the pool.