GPA.PR.A on Watch-Negative after Lehman Credit Event

Gatehouse Capital has announced:

it received credit event notices today from The Toronto-Dominion Bank with respect to Lehman Brothers Holdings Inc. as a result of that company filing a petition under Chapter 11 of the U.S. Bankruptcy Code with the United States Bankruptcy Court for the Southern District of New York, as well as with respect to the Federal National Mortgage Association as a result of the appointment of a conservator.

The return on the credit linked note is linked to the number of defaults experienced over its term among the reference entities in the CLN Portfolio. The credit linked note has been structured so that it is unaffected by the first net losses on the CLN Portfolio up to 5.12% of the initial value of the CLN Portfolio (initially representing defaults by 11 reference entities in a CLN Portfolio comprised of 129 reference entities). The net loss on a reference entity that defaults is calculated as the percentage exposure in the CLN Portfolio to such reference entity reduced by a 40% fixed recovery rate. Following the credit events, the credit linked note will be able to withstand approximately 8 further credit events in the CLN Portfolio.

and today comes the news that:

Standard & Poor’s Ratings Services placed the rating of Global Credit Pref Corp.’s P-4 rated Preferred Shares on CreditWatch with negative implications yesterday. The rating on the Preferred Shares of Global Credit Pref Corp. mirrors the B/ Watch Neg rating on the structured credit linked note issued by The Toronto-Dominion Bank and held by Global Credit Trust, to which Global Credit Pref Corp. has exposure, as a result of credit events relating to reference entities in the financial industry sector.

GPA.PR.A was last mentioned on PrefBlog when it was downgraded to P-4. There are 1.6+ million shares outstanding. GPA.PR.A is not tracked by HIMIPref™.

One Response to “GPA.PR.A on Watch-Negative after Lehman Credit Event”

  1. […] was last mentioned on PrefBlog in connection with the S&P Watch Negative after the Lehman event. There are 1.6+ million shares outstanding. GPA.PR.A is not tracked by […]

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