Fortress Works on Mapeley Take Over Bid

The potential takeover bid for the U.K. outsourcing group Mapeley by U.S. hedge fund Fortress, its majority shareholder, will have no impact on CMBS that are backed by borrowers with Mapeley as their sponsor, Fitch Ratings said last week. Fitch said that the takeover approach coincides with the property company’s need to refinance about £260 million ($515.5 million)of its debt before the end of April and the recent bid by Fortress was worth roughly £250 million. “In most cases, a sponsor of a loan must approach the relevant facility agent if it becomes subject to a change of control,” Fitch analysts said. “Such a loan, including accrued interest and any amounts payable under the loan documents, might become immediately due and payable, either on demand by the agent or automatically.” The relevant transactions are: DECO 6 – UK Large Loans 2 plc, DECO 8 Series 2006-UK Conduit 2 plc, DECO 11 Series 2006-UK Conduit 3 plc, European Loan Conduit No. 22 and Taurus CMBS (UK) 2006-2 plc. Mapeley focuses on the acquisition, ownership and management of a diverse portfolio of commercial properties, primarily let to government and strong credit quality tenants. The firm currently owns and actively manages a property portfolio of over £2.2 billion. — NC