Chatham Financial Delivers a $5.8 Million Dollar Cash Gain for Defeasance Client
First-in-class value-sharing program marks $75 million in defeasance client returns
Kennett Square, Pa., Feb. 2, 2011 — Chatham Financial, a globally recognized leader in defeasance, interest rate risk and currency risk management, capital advisory, accounting and valuations, has announced the payment of $5.8 million to a defeasance client as part of Chatham’s defeasance value-sharing program.
“Chatham is extremely pleased to deliver such a large payment to our client and remains committed to educating each and every borrower that we work with on the sources of this value and how it may be returned to them,” said Regan Campbell, director of defeasance services at Chatham Financial.
Chatham pioneered this transparent approach of delivering residual defeasance value, and to date has generated over $75 million to their defeasance clients.
“We take great pride in the way Chatham has brought transparency to defeasance residual value for both our clients and the industry as a whole,” said Campbell.
About Defeasance
Defeasance is a process by which a borrower is released from the obligations associated with its commercial real estate debt through the purchase of a portfolio of high quality bonds. This portfolio of securities serves as replacement collateral for the property or properties under the loan. The portfolio secures the debt and generates the cash flows required to meet the future debt service.
About Chatham Financial
Chatham Financial is the largest independent interest rate and currency risk advisor, and a leader in defeasance, hedge accounting, valuations and debt advisory worldwide. Chatham provides innovative solutions in both the derivatives and debt markets through a powerful combination of advisory services and technology solutions. Founded in 1991, Chatham is the trusted advisor to over 1,000 market leading firms. As an industry leader in defeasance Chatham has completed over 800 defeasances with a total balance of over $24 billion on behalf of its clients. Chatham is recognized for its expertise in managing the complexities of the defeasance process and maximizing cost savings for its clients.
