Prudential Mortgage Capital Contributes $526 Million To BSCMS 2002-PBW1 Conduit Deal

Business Wire,  Oct 9, 2002  

Tags: conduit, Prudential Insurance Company of America

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Business Editors

NEWARK, N.J.--(BUSINESS WIRE)--Oct. 9, 2002

Prudential Mortgage Capital Company announced today that it has recently completed a commercial mortgage backed securities transaction totaling $921 million with its new partners, Wells Fargo Bank and Bear Stearns.

Prudential Mortgage Capital contributed $526 million in collateral from 66 commercial loans originated by Prudential, or about 57 percent of the pool. Prudential Mortgage Capital is the commercial mortgage loan business of Prudential Financial, Inc. (NYSE:PRU).

The conduit deal, named Bear Stearns Commercial Securities Trust, 2002-PBW1, was sold through Bear Stearns and Merrill Lynch. It was rated by Moody's and Fitch.

In addition to Prudential's loan contribution, Bear Stearns contributed $303 million (33 percent) and Wells Fargo Bank contributed $85 million (10 percent). Prudential Asset Resources, Prudential's loan-servicing business, will handle the primary servicing of all the Prudential loans in the pool. Both Prudential Asset Resources and Wells Fargo will jointly master service this transaction.

"We were delighted to work with Wells Fargo and Bear Stearns to generate this transaction, which was well-received by investors," said Richard L. Jarocki Jr., principal of Prudential Mortgage Capital. "Wells Fargo and Bear Stearns are considered companies that complement Prudential's credit and business culture. We are pleased to have forged this alliance with Wells Fargo and Bear Stearns and we hope that this relationship will be in the market several times a year."

The CMBS securitization consists of a $921 million pool of 126 fixed-rate mortgage loans secured by commercial and multifamily properties located throughout 28 states. The property type composition of the pool is as follows: retail, 41.5%; office, 25%; multifamily, 19.2%; industrial, 11.6%; self-storage, 1.2%; manufactured housing, 1%, and other properties, 0.5%. The weighted average loan-to-value for the pool is 66.7% and debt service coverage ratio is 1.67.

Prudential's contribution consisted of 66 loans in 22 states. Property types included retail, 30.8%; office, 29%; multifamily, 24.4%, industrial, 12.8%, self-storage, 2% and manufactured housing, 1%.

Prudential Mortgage Capital Company is a national full-service, commercial mortgage finance business, originating mortgage loans for Fannie Mae and FHA programs, the capital and mezzanine markets, Prudential's general account, and other institutional investors. The company had assets under management and administration of $35.2 billion as of June 30, 2002.

Prudential Financial companies, with approximately $557 billion in total assets under management and administration as of June 30, 2002, serve individual and institutional customers worldwide and include The Prudential Insurance Company of America, one of the largest life insurance companies in the U.S. These companies offer a variety of products and services, including life insurance, property and casualty insurance, mutual funds, annuities, pension and retirement related services and administration, asset management, securities brokerage, banking and trust services, real estate brokerage franchises and relocation services. For more information, visit www.prudential.com.

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