Starz Real Estate’s Commercial Real Estate Collateralized Loan Obligation

Reed Smith advised Starz as sellers, operating advisor, advancing agent, special servicer and retention holders as to English Law and U.S. Law. Reed Smith also advised Situs Asset Management as servicer, U.S. Bank Trustees as trustee, Allen and Overy provided English Law advice to the Trustee, Cadwalader to the arranger and placement agent, and Arthur Cox provided Irish Law advice to the issuer.

Starz Real Estate announced the first commercial real estate collateralized loan obligation (CRE CLO) in Europe, Starz Mortgage Securities 2021-1, via Credit Suisse. 

The £219m GBP-equivalent dual currency transaction which has now closed, represents a significant milestone for the commercial real estate market in Europe.

The CRE CLO is backed by a portfolio of nine commercial mortgage loans originated by Starz Mortgage Capital and Starz ICAV (for and on behalf of Starz European Loan Fund I), and is secured by 17 properties in the UK and Europe – 84.8% are GBP-denominated across eight regions throughout the UK, 15.2% are EUR-denominated, across Spain (5.8%), Ireland (4.8%), and the Netherlands (4.6%).

S&P Global Ratings Europe Limited, a division of S&P Global Inc. (S&P) and Kroll Bond Rating Agency UK Limited (KBRA) have assigned ratings to ten classes of Starz Mortgage Securities 2021-1 DAC, a static CRE CLO transaction.

The Reed Smith team was led by structured finance partner Iain Balkwill (Picture) and senior associate Josh Hughes, supported by a large cross-practice team from across the firm including Trish O’Donnell who provided U.S. securities and risk retention advice. In addition, partner Kamal Arulvel played an integral role in connection with the structure having advised on the existing warehouse lines that were refinanced as part of the securitisation and performed the role as lead counsel on the origination of some of the loans. 

The Reed Smith team providing legal advice to Situs Asset Management was led by Angelina Soon.

Cadwalader’s team was led by partners David Quirolo, Nick Shiren and Jeffrey Rotblat and special counsel Sabah Nawaz, and also included partners Adam Blakemore, Jason Schwartz, Scott Cammarn, and James Frazier; senior counsel Maurine Bartlett; special counsel Catherine Richardson and Adam Risell; and associates Jinisha Patel, Maria Geraghty, Matthew Lefkowitz, Ed Morphett, Aaron Kennedy and Nicole Schapira.

Involved fees earner: Maurine Bartlett – Cadwalader Wickersham & Taft; Adam Blakemore – Cadwalader Wickersham & Taft; Scott Cammarn – Cadwalader Wickersham & Taft; James Frazier – Cadwalader Wickersham & Taft; Maria Geraghty – Cadwalader Wickersham & Taft; Aaron Kennedy – Cadwalader Wickersham & Taft; Matthew Lefkowitz – Cadwalader Wickersham & Taft; Edward Morphett – Cadwalader Wickersham & Taft; Sabah Nawaz – Cadwalader Wickersham & Taft; Jinisha Patel – Cadwalader Wickersham & Taft; David Quirolo – Cadwalader Wickersham & Taft; Catherine Richardson – Cadwalader Wickersham & Taft; Adam Risell – Cadwalader Wickersham & Taft; Nicole Schapira – Cadwalader Wickersham & Taft; Jason Schwartz – Cadwalader Wickersham & Taft; Nick Shiren – Cadwalader Wickersham & Taft; Kamal Arulvel – Reed Smith; Iain Balkwill – Reed Smith; Josh Hughes – Reed Smith; Trish O’Donnell – Reed Smith; Y. Jeffrey Rotblan – Reed Smith; Angelina Soon – Reed Smith;

Law Firms: Cadwalader Wickersham & Taft; Reed Smith;

Clients: Credit Suisse; SitusAMC, Inc; Starz Real Estate;