CANARY WHARF

This deal is a tap issue from last year’s securitisation of Canary Wharf Finance II. With the same vehicle being used to issue the bonds, it is logical that the players have remained the same. The transaction is the first securitisation on uncompleted buildings, and the rating agencies had to account for the construction risks. To balance the increased risk, all the buildings are subject to binding agreements for leases by the lead managers, which means that if the completion of the buildings is delayed the banks will make payments to the securitisation instead. A credit facility from Gibraltar Holdings has also been put in, in relation to one of the buildings. The facility supports the securitised cashflow and prevents it from falling below the rate of rent on the building which was judged on the day the deal closed. Linklaters & Alliance partner Jim Rice and associate Kerry Pettigrew are advising Citibank as arranger of the facility. Allen & Overy partner Julian Tucker says that the inter-creditor issues were the most difficult. Trying to keep the bondholders, banks, lawyers, Gibraltar Holdings and Canary Wharf happy was obviously not an easy task.