Lehman, UBS Set Mortgage Deal

NEW YORK Two U.S. investment banks, Lehman Bros. Holdings and UBS Warburg LLC, plan to price $996 million commmercial mortgage-backed securities (CMBS) as early as today. The “LB-UBS Commercial Mortgage Trust 2000-C5” will be supported by cash flows of 109 mortgage loans. Lehman Brothers will contribute 46.9% of the loans and UBS Warburg 53.1%. The deal, expected to close on December 21, will be underwritten by Lehman, UBS Warburg, and Deutsche Bank Securities. The $996 million interest-only securities were pegged at a 375 basis point premium over treasuries. The loan pool included the following property types: office (44.2%), retail (19.7%), multifamily (14.7%), office/retail (6.%) and industrial/warehouse (4.8%) and hotel (2.1%).The real estate properties are located in 36 states and Washington, D.C.,with the largest concentrations in New York, Florida, and California. (12/13/00)