DBRS Confirms Trust 600 De La Gauchetière West Series A Bonds at A (sf)

DBRS Limited (DBRS) has today confirmed the rating of the outstanding 7.96% Series A Bonds (the Series A Bonds) issued by Trust 600 De La Gauchetière West (the Trust) at A (sf).

The confirmation is part of DBRS’s continued effort to provide timely credit rating opinions and increased transparency to market participants.

The Trust is a special-purpose vehicle established under the laws of Ontario pursuant to an Amended and Restated Declaration of Trust dated as of February 1, 2000. Pursuant to a 30-year lease (the Long-Term Lease), the Trust leased the National Bank Tower office property located at 600 de la Gauchetière West in Montréal and related amenities (the Property) from National Bank Realty Inc. The Trust subleased its interest in the Property to National Bank of Canada (the Bank) on a triple net basis for a term of 20 years.

On February 10, 2000, the Trust issued 7.96% Series A Bonds and 8.29% Series B Bonds. Series A Bonds pay a blend of principal and interest on a semi-annual basis until the maturity date, February 10, 2020 (the Maturity Date). The initial issuance size of the Series A Bonds was $97,000,000, and at year-end 2014, the Series A Bonds had an outstanding balance of $42,851,669. Series B Bonds pay interest only until the Maturity Date, at which time the entire principal amount in respect of the Series B Bonds will be paid in a single payment.

The amount of basic rent payable by the Bank under the Bank Lease is sufficient to pay all principal and interest under the Series A Bonds and interest (and principal at maturity) under the Series B Bonds. All additional rent obligations of the Trust under the Long-Term Lease have been passed down to the Bank under the Bank Lease.

The rating of the Series A Bonds is primarily based on the rating of the Bank.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

The applicable methodologies are Structured Finance Flow-Through Ratings and Legal Criteria for Canadian Structured Finance, which are available on our website under Methodologies.

For more detailed information on the transaction structure, please refer to the rating report of the Trust at www.dbrs.com.