EXHIBIT 1.1
UNDERWRITING AGREEMENT
CD 2007-CD5
Commercial Mortgage Pass-Through Certificates
UNDERWRITING AGREEMENT
November 21, 2007
Deutsche Bank Securities Inc. Credit Suisse Securities (USA) LLC
00 Xxxx Xxxxxx 11 Madison Avenue, 9th Floor
New York, New York 10005 Xxx Xxxx, Xxx Xxxx 00000
Citigroup Global Markets Inc. SunTrust Xxxxxxxx Xxxxxxxx, Inc.
000 Xxxxxxxxx Xxxxxx, 00xx Xxxxx 000 Xxxxxxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000 Xxxxxxx, Xxxxxxx 00000
Ladies and Gentlemen:
Deutsche Mortgage & Asset Receiving Corporation, a Delaware
corporation (the "Company"), proposes, subject to the terms and conditions
stated herein, to sell to Deutsche Bank Securities Inc. ("DBS"), Citigroup
Global Markets Inc. ("Citigroup"), Credit Suisse Securities (USA) LLC ("CS") and
SunTrust Xxxxxxxx Xxxxxxxx, Inc. ("STRH," and together with DBS, Citigroup and
CS, the "Underwriters") its CD 2007-CD5 Commercial Mortgage Pass-Through
Certificates, Class A-1, Class A-2, Class A-3, Class A-AB, Class A-4, Class
A-1A, Class XP, Class AM, Class A-MA, Class AJ, Class A-JA, Class B and Class C
Certificates (the "Offered Certificates"). The Offered Certificates, together
with the Class XS, Class D, Class E, Class F, Class G, Class H, Class J, Class
K, Class L, Class M, Class N, Class O, Class P, Class Q and Class S
Certificates, evidence the entire beneficial ownership interest in the assets of
the Trust Fund (as defined in the Pooling and Servicing Agreement referred to
below) consisting primarily of a pool of mortgage loans secured by first liens
on commercial, multifamily and manufactured housing properties (the "Mortgage
Loans"), that will have, as of the related due date of each Mortgage Loan in
December 2007, after taking into account all payments of principal due on the
Mortgage Loans on or before such date, whether or not received, an aggregate
principal balance of $2,094,183,816, subject to a variance of plus or minus
5.0%. The Mortgage Loans will be acquired by the Company from German American
Capital Corporation ("GACC"), Citigroup Global Markets Realty Corp. ("CGMRC"),
Artesia Mortgage Capital Corporation ("Artesia"), SunTrust Bank ("SunTrust") and
CWCapital LLC ("CWCapital," and together with GACC, CGMRC, Artesia and SunTrust,
the "Loan Sellers") in exchange for immediately available funds pursuant to five
separate mortgage loan purchase agreements, each to be dated as of November 29,
2007 between the Company and GACC, CGMRC, Artesia, SunTrust and CWCapital,
respectively (collectively, the "Mortgage Loan Purchase Agreements"). Two
separate real estate mortgage investment conduit ("REMIC") elections will be
made with respect to the Trust Fund for federal income tax purposes. The Trust
Fund is to be created and the Offered Certificates are to be issued pursuant to
a pooling and servicing agreement (the "Pooling and Servicing Agreement") to be
dated as of December 1, 2007 by and among the Company, as depositor, Capmark
Finance Inc., as a master servicer ("Capmark"), Wachovia Bank, National
Association, as a master servicer ("Wachovia," and together with Capmark, the
"Master Servicers," and each, a "Master Servicer"), LNR Partners, Inc., as
special servicer (the "Special Servicer"), Xxxxx Fargo Bank, National
Association, as trustee and custodian (in its capacity as trustee, the
"Trustee"), and Deutsche Bank Trust Company Americas, as certificate
administrator and paying agent (in its capacity as certificate administrator,
the "Certificate Administrator," and together with the Master Servicers, the
Special Servicer and the Trustee, the "Transaction Parties," and each, a
"Transaction Party"). Capitalized terms used herein but not defined herein have
the respective meanings given to them in the Pooling and Servicing Agreement.
1. Representations and Warranties The Company represents and
warrants to, and agrees with, the Underwriters that: (a) The Company has filed
with the Securities and Exchange Commission (the "Commission") a registration
statement (No. 333-130390) on Form S-3 for registration under the Securities Act
of 1933, as amended (the "Act"), of mortgage pass-through certificates,
including the Offered Certificates, which registration statement has become
effective, and copies of which, as amended to the date hereof, have heretofore
been delivered to you. Such registration statement meets the requirements set
forth in Rule 415(a)(1) under the Act and complies in all other material
respects with such rule. The Company proposes to file with the Commission
pursuant to Rule 424 under the Act a supplement, dated November 21, 2007 to the
prospectus, dated November 21, 2007 relating to the Offered Certificates and the
method of distribution thereof and has previously advised you of all further
information (financial and other) with respect to the Offered Certificates set
forth therein. Such registration statement, including the exhibits thereto and
any information incorporated therein by reference, as amended on the date hereof
is hereinafter called the "Registration Statement"; such prospectus, in the form
in which it will be filed with the Commission pursuant to Rule 424 under the
Act, is hereinafter called the "Base Prospectus"; such supplement to the Base
Prospectus, in the form in which it will be filed with the Commission pursuant
to Rule 424 of the Act, is hereinafter called the "Prospectus Supplement"; and
the Base Prospectus and the Prospectus Supplement together are hereinafter
called the "Prospectus." The Company shall make a good faith and reasonable
effort to file the Prospectus within the time required under Rule 424 of the Act
and, in the event that the Company fails to timely file the Prospectus, the
Company shall file the Prospectus as soon as practicable thereafter. The Company
will not, without your prior consent, file any other amendment to the
Registration Statement or make any change in the Base Prospectus or the
Prospectus Supplement until after the period during which a prospectus is
required to be delivered to purchasers of the Offered Certificates under the Act
(the "Prospectus Delivery Period"). The Company will file with the Commission
within fifteen days of the issuance of the Offered Certificates a report on Form
8-K setting forth specific information concerning the Offered Certificates and
which will include the Pooling and Servicing Agreement as an exhibit (the "Form
8-K").
(b) As of or prior to the time when sales to purchasers of the
Offered Certificates were first made in accordance with Rule 159 of the Act,
which was(i) approximately 11:45 a.m. (New York City time) on November 20, 2007
for all Offered Certificates other than the Class XP Certificates, and (ii)
approximately 1:37 p.m. (New York City time) on November 21, 2007 for the Class
XP Certificates (the "Time of Sale"), the Company had prepared and filed with
the Commission the following information: (i) each Free Writing Prospectus (as
defined below) dated November 7, 2007 (collectively, the "Preliminary FWP") and
(ii)(A) each Free Writing Prospectus dated November 19, 2007 and (B) each Free
Writing Prospectus dated November 20, 2007 (each Free Writing Prospectus
referred to in this clause (ii), a "Revised FWP," and collectively, the "Revised
FWPs") (the first page of each Free Writing Prospectus referred to in clause (i)
and clause (ii) is attached hereto as Exhibit A). The Preliminary FWP, the
Revised FWPs and any additional Disclosure Information (as defined below)
delivered to the investors prior to the Time of Sale is collectively referred to
as the "Time of Sale Information." If, subsequent to the date of this Agreement,
the Company or the Underwriters determine that, as to the investors in one or
more Classes of the Offered Certificates, such initial Time of Sale Information
includes an untrue statement of material fact or omits to state a material fact
necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading, and the Underwriters terminate their
old purchase contracts and enter into new purchase contracts with investors in
such Classes of the Offered Certificates, then "Time of Sale Information" shall
refer to all of the information conveyed to investors at the time of entry into
the new purchase contract (each, a "Subsequent Time of Sale"), including any
information that corrects such material misstatements or omissions ("Corrective
Information"). The Preliminary FWP and the Revised FWPs are the only Issuer Free
Writing Prospectuses (as defined below) prepared by or on behalf of the Company
as of the date hereof.
(c) As of the date hereof, when the Registration Statement became
effective, as of the Time of Sale, when the Prospectus Supplement is first filed
pursuant to Rule 424 under the Act, at the time of any Subsequent Time of Sale,
when, prior to the Closing Date, any amendment to the Registration Statement
becomes effective, when any supplement to the Prospectus Supplement is filed
with the Commission, and on the Closing Date, (i) the Registration Statement, as
amended as of any such time, and the Prospectus, as amended or supplemented as
of any such time, complied, complies and will comply in all material respects
with the applicable requirements of the Act and the rules thereunder, (ii) the
Registration Statement, as amended as of any such time, did not, does not and
will not contain any untrue statement of a material fact and did not, does not
and will not omit to state any material fact required to be stated therein or
necessary to make the statements therein not misleading and the Prospectus, as
amended or supplemented as of any such time, did not, does not and will not
contain an untrue statement of a material fact and did not, does not and will
not omit to state a material fact necessary in order to make the statements
therein, in light of the circumstances under which they were made, not
misleading and (iii) the initial Time of Sale Information did not (when
evaluated as of the Time of Sale only), and the Time of Sale Information
existing at any Subsequent Time of Sale, if any, will not, as of such Subsequent
Time of Sale, contain an untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading; provided, however,
that the Company makes no representations or warranties as to (A) the
Underwriter Supplied Information (as defined in Section 8(b) hereof), (B) the
Loan Sellers' Information (as defined in Section 8(a) hereof) or (C) the
Transaction Party Information (as defined in Section 8(a) hereof). Any Issuer
Information (as defined below) provided by the Company to any Underwriter as of
the date hereof for inclusion in an Underwriter Free Writing Prospectus (as
defined below), did not, as of the date that such Issuer Information was so
provided, and does not, as of the date of this Agreement, contain an untrue
statement of a material fact or omit to state a material fact necessary in order
to make the statements therein, in light of the circumstances under which they
were made, not misleading; provided, however, the Company shall not be in breach
of this representation if the Company provided Issuer Information to the
Underwriters, correcting such untrue statement or omission of a material fact
contained in previously delivered Issuer Information, so long as the Company
delivered the corrected information to the Underwriter at a reasonable time
prior to the date hereof.
(d) The Company is a corporation, duly organized, validly existing
and in good standing under the laws of the State of Delaware with full power and
authority (corporate and other) to own its properties and conduct its business,
as described in the Prospectus, and to enter into and perform its obligations
under this Agreement, the Mortgage Loan Purchase Agreements and the Pooling and
Servicing Agreement, and is conducting its business so as to comply in all
material respects with all applicable statutes, ordinances, rules and
regulations of the jurisdictions in which it is conducting business.
(e) The Company has not received and is not aware of (i) any request
by the Commission for any further amendment of the Registration Statement or the
Prospectus or for any additional information, (ii) the issuance by the
Commission of any stop order suspending the effectiveness of the Registration
Statement or the institution or threatening of any proceeding for that purpose
or (iii) any notification with respect to the suspension of the qualification of
the Offered Certificates for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose.
(f) On or prior to the Closing Date, the Company will have entered
into the Pooling and Servicing Agreement and the Mortgage Loan Purchase
Agreements; this Agreement has been duly authorized, executed and delivered by
the Company, and the Pooling and Servicing Agreement and the Mortgage Loan
Purchase Agreements, when delivered by the Company, will have been duly
authorized, executed and delivered by the Company, and this Agreement
constitutes, and the Pooling and Servicing Agreement and the Mortgage Loan
Purchase Agreements will constitute, valid and binding agreements of the
Company, enforceable against the Company in accordance with their terms, except
as such enforceability may be limited by (i) bankruptcy, insolvency,
liquidation, moratorium, receivership, reorganization or similar laws affecting
the rights of creditors generally, (ii) general principles of equity, whether
enforcement is sought in a proceeding in equity or at law, and (iii) public
policy considerations underlying the securities laws, to the extent that such
public policy considerations limit the enforceability of any provisions of this
Agreement that purport to provide indemnification from securities law
liabilities.
(g) The Offered Certificates, the Pooling and Servicing Agreement
and the Mortgage Loan Purchase Agreements: (i) conform in all material respects
to the descriptions thereof contained in each of (A) the Prospectus, (B) the
initial Time of Sale Information and (C) any Issuer Information (as may have
been revised and corrected if such revised or corrected information was
delivered a reasonable time prior to the Time of Sale) delivered to any
Underwriter for inclusion in an Underwriter Free Writing Prospectus; and (ii)
will conform in all material respects to the descriptions thereof in the Time of
Sale Information (as constituted at any Subsequent Time of Sale). The Offered
Certificates have been duly and validly authorized by the Company, and will,
when duly and validly executed and authenticated by the Trustee and delivered to
and paid for by the Underwriters in accordance with this Agreement and the
Pooling and Servicing Agreement, be validly outstanding and entitled to the
benefits of the Pooling and Servicing Agreement.
(h) As of the Closing Date, the representations and warranties of
the Company set forth in Section 2.03 of the Pooling and Servicing Agreement
will be true and correct.
(i) Neither the issuance and sale of the Offered Certificates, nor
the consummation of any other of the transactions contemplated herein, nor the
fulfillment of any of the terms of the Pooling and Servicing Agreement, the
Mortgage Loan Purchase Agreements or this Agreement, will result in the breach
of any term or provision of the certificate of incorporation or by-laws of the
Company or conflict with, result in a material breach, violation or acceleration
of or constitute a default under, the terms of any indenture or other agreement
or instrument to which the Company or any of its subsidiaries is a party or by
which it is bound, or any statute, order or regulation applicable to the Company
or any of its subsidiaries of any court, regulatory body, administrative agency
or governmental body having jurisdiction over the Company or any of its
subsidiaries. Neither the Company nor any of its subsidiaries is a party to,
bound by or in breach or violation of any indenture or other agreement or
instrument, or subject to or in violation of any statute, order or regulation of
any court, regulatory body, administrative agency or governmental body having
jurisdiction over it, which materially and adversely affects the ability of the
Company to perform its obligations under each of this Agreement, the Mortgage
Loan Purchase Agreements and the Pooling and Servicing Agreement.
(j) There are no actions or proceedings against, or investigations
of, the Company pending, or, to the knowledge of the Company, threatened, before
any court, administrative agency or other tribunal (i) asserting the invalidity
of this Agreement, the Pooling and Servicing Agreement or the Offered
Certificates, (ii) seeking to prevent the issuance of the Offered Certificates
or the consummation of any of the transactions contemplated by this Agreement or
the Pooling and Servicing Agreement, (iii) which might materially and adversely
affect the performance by the Company of its obligations under, or the validity
or enforceability of, this Agreement, the Pooling and Servicing Agreement or the
Offered Certificates or (iv) seeking to affect adversely the federal income tax
attributes of the Offered Certificates described in the Prospectus.
(k) There has not been any material adverse change in the business,
operations, financial condition, properties or assets of the Company since the
date of its latest audited financial statements which would have a material
adverse effect on the ability of the Company to perform its obligations under
this Agreement or the Pooling and Servicing Agreement.
(l) Any taxes, fees and other governmental charges in connection
with the execution, delivery and performance of this Agreement and the Pooling
and Servicing Agreement (other than income taxes, franchise taxes and recording
and filing fees) and the execution, delivery and sale of the Offered
Certificates have been or will be paid on or prior to the Closing Date.
(m) Immediately prior to the assignment of the Mortgage Loans to the
Trustee, the Company will have good title to, and will be the sole owner of,
each Mortgage Loan free and clear of any pledge, mortgage, lien, security
interest or other encumbrance of any other person, except for any retained
servicing.
(n) No authorization, approval or consent of or filing or
registration with, any court or governmental authority or agency is necessary in
connection with the offering, issuance or sale of the Offered Certificates
hereunder or the execution, delivery or performance by the Company of the
Pooling and Servicing Agreement or this Agreement, except such as have been, or
as of the Closing Date will have been, obtained or completed, as applicable, or
such as may otherwise be required under applicable state securities laws in
connection with the purchase and offer and sale of the Offered Certificates by
the Underwriters and any recordation of the respective assignments of the
Mortgage Loans to the Trustee pursuant to the Pooling and Servicing Agreement
that have not yet been completed.
(o) The Company is not, and the issuance and sale of the Offered
Certificates in the manner contemplated by the Prospectus will not cause the
Company or the Trust Fund to be, subject to registration or regulation as an
"investment company" under the Investment Company Act of 1940, as amended (the
"1940 Act"); and the Pooling and Servicing Agreement is not required to be
qualified under the Trust Indenture Act of 1939, as amended (the "Trust
Indenture Act").
(p) Upon delivery to the Underwriters of the Offered Certificates
pursuant to this Agreement, each Underwriter will have good title to the Offered
Certificates purchased by such Underwriter, in each case free and clear of liens
granted by or imposed upon the Company.
(q) The consideration received by the Company upon the sale of the
Offered Certificates to the Underwriters will constitute at least reasonably
equivalent value and fair consideration for the Offered Certificates.
(r) The Company (i) will be solvent at all relevant times prior to,
and will not be rendered insolvent by, the sale of the Offered Certificates to
the Underwriters and (ii) is not selling the Offered Certificates to the
Underwriters with any intent to hinder, delay or defraud any of the creditors of
the Company.
(s) The transfer of the Mortgage Loans to the Trust and the sale of
the Offered Certificates to each of the Underwriters, at the Closing Date, will
be treated by the Company for financial accounting and reporting purposes as a
sale of assets and not as a pledge of assets to secure debt.
(t) The Company possesses all material licenses, certificates,
authorizations or permits issued by the appropriate state, federal or foreign
regulatory agencies or bodies necessary to conduct business now operated by it,
and the Company has not received any notice of proceedings relating to the
revocation or modification of any such license, certificate, authorization or
permit which, singly or in the aggregate, if the subject of an unfavorable
decision, ruling or finding, would materially and adversely affect the
condition, financial or otherwise, or the earnings, business affairs or business
prospects of the Company.
(u) The Company is not, and on the date on which the first bona fide
offer of the Certificates is made will not be, an "ineligible issuer," as
defined in Rule 405 under the Act.
2. Purchase and Sale. On the basis of the representations and
warranties herein contained and subject to the terms and conditions herein set
forth, the Company agrees to sell to the Underwriters, and each of the
Underwriters agrees severally, and not jointly, to purchase from the Company the
principal or notional amount of each class of Offered Certificates under its
name at the Purchase Price set forth in Schedule I hereto.
3. Delivery and Payment. Delivery of and payment for the Offered
Certificates shall be made on the date, location and time of delivery set forth
in Schedule I hereto, or such later date as the Underwriters shall designate,
which date and time may be postponed by agreement between the Underwriters and
the Company (such date, location and time of delivery and payment for the
Offered Certificates being herein called the "Closing Date"). Delivery of the
Offered Certificates shall be made to the Underwriters against payment by the
Underwriters of the purchase price thereof in immediately available funds.
Delivery of such Offered Certificates shall be made through the facilities of
the depository or depositories set forth on Schedule I hereto. Any Offered
Certificates not in book-entry form shall be registered in such names and in
such denominations as any Underwriter, as applicable, may request not less than
three full business days in advance of the Closing Date.
The Company agrees to have the Offered Certificates available for
inspection, checking and packaging, as applicable, by the Underwriters in New
York, New York, not later than 1:00 p.m. on the business day prior to the
Closing Date.
4. Offering by Underwriters.
(a) It is understood that the several Underwriters propose to offer
the Offered Certificates for sale to the public as set forth in the Prospectus
and the Underwriters agree that all such offers and sales by them shall be made
in compliance with all applicable laws and regulations. It is further understood
that the Company, in reliance upon a no-filing letter from the Attorney General
of the State of New York granted pursuant to Policy Statement 105, has not and
will not file an offering statement pursuant to Section 352-e of the General
Business Law of the State of New York with respect to the Offered Certificates.
As required by Policy Statement 105, each Underwriter therefore covenants and
agrees with the Company that sales of the Offered Certificates made by such
Underwriter, as applicable, in and from the State of New York will be made only
to institutional investors within the meaning of Policy Statement 105.
(b) Each Underwriter hereby represents and agrees, severally and not
jointly, that in relation to each Member State of the European Economic Area
which has implemented the Prospectus Directive (each, a "Relevant Member
State"), with effect from and including the date on which the Prospectus
Directive is implemented in that Relevant Member State (the "Relevant
Implementation Date") it has not made and will not make an offer of the Offered
Certificates to the public in that Relevant Member State, except that it may,
with effect from and including the Relevant Implementation Date, make an offer
of the Offered Certificates to the public in that Relevant Member State:
(i) in (or in Germany, where the offer starts within) the period
beginning on the date the publication of a prospectus in relation to the
Offered Certificates which has been approved by the competent authority in
that Relevant Member State or, where appropriate, approved in another
Relevant Member State and notified to the competent authority in that
Relevant Member State, all in accordance with the Prospectus Directive and
ending on the date which is 12 months after the date of publication;
(ii) at any time to legal entities which are authorized or regulated
to operate in the financial markets or, if not so authorized or regulated,
whose corporate purpose is solely to invest in securities;
(iii) at any time to any legal entity which has two or more of (1)
an average of at least 250 employees during the last financial year; (2) a
total balance sheet of more than (euro)43,000,000 and (3) an annual net
turnover of more than (euro)50,000,000, as shown in its last annual or
consolidated accounts; or
(iv) in any other circumstances which do not require the publication
by the Company of a prospectus pursuant to Article 3 of the Prospectus
Directive.
For the purposes of this representation, the expression an "offer of
the Offered Certificates to the public" in any Relevant Member State means the
communication in any form and by any means of sufficient information on the
terms of the offer and the Offered Certificates to be offered so as to enable an
investor to decide to purchase or subscribe the Offered Certificates, as the
same may be varied in that Member State by any measure implementing the
Prospectus Directive in that Member State, and the expression "Prospectus
Directive" means Directive 2003/71/EC and includes any relevant implementing
measure in each Relevant Member State.
(c) Each Underwriter, severally and not jointly, hereby further
represents and agrees, with respect to the United Kingdom, that:
(i) it has only communicated or caused to be communicated and will
only communicate or cause to be communicated an invitation or inducement
to engage in investment activity (within the meaning of Section 21 of the
Financial Services and Markets Act) received by it in connection with the
issue or sale of the Offered Certificates in circumstances in which
Section 21(1) of the Financial Services and Markets Act does not apply to
the Company; and
(ii) it has complied and will comply with all applicable provisions
of the Financial Services and Markets Act with respect to anything done by
it in relation to the certificates in, from or otherwise involving the
United Kingdom.
5. Agreements. The Company agrees with the several Underwriters
that:
(a) The Company will promptly advise the Underwriters (i) when any
amendment to the Registration Statement shall have become effective, (ii) of any
request by the Commission for any amendment to the Registration Statement or the
Prospectus or for any additional information, (iii) of the issuance by the
Commission of any stop order suspending the effectiveness of the Registration
Statement affecting the Offered Certificates or the institution or threatening
of any proceeding for that purpose and (iv) of the receipt by the Company of any
notification with respect to the suspension of the qualification of the Offered
Certificates for sale in any jurisdiction or the initiation or threatening of
any proceeding for such purpose. The Company will not file any amendment to the
Registration Statement or supplement to the Prospectus unless the Company has
furnished to you a copy for your review prior to filing and will not file any
such proposed amendment or supplement to which you reasonably object until after
the period in which a prospectus is required to be delivered to purchasers of
the Offered Certificates under the Act. Subject to the foregoing sentence, the
Company will cause the Prospectus Supplement to be filed with the Commission in
accordance with Rule 424 of the Act. The Company will use its best efforts to
prevent the issuance of any such stop order and, if issued, to obtain as soon as
possible the withdrawal thereof.
(b) If, at any time during the Prospectus Delivery Period any event
occurs as a result of which the Prospectus as then amended or supplemented would
include any untrue statement of a material fact or omit to state any material
fact necessary to make the statements therein in light of the circumstances
under which they were made not misleading, or if it shall be necessary to amend
or supplement the Registration Statement or the Prospectus to comply with the
Act or the rules under the Act, the Company promptly will prepare and file with
the Commission, subject to paragraph (a) of this Section 5, an amendment or
supplement that will correct such statement or omission or an amendment that
will effect such compliance and, if such amendment or supplement is required to
be contained in a post-effective amendment to the Registration Statement, will
use its best efforts to cause such amendment of the Registration Statement to be
made effective as soon as possible.
(c) The Company will furnish to the Underwriters and counsel for the
Underwriters, without charge, signed copies of the Registration Statement
(including exhibits thereto) and each amendment thereto that shall become
effective on or prior to the Closing Date and, during the Prospectus Delivery
Period, as many copies of the Base Prospectus and the Prospectus Supplement and
any amendments and supplements thereto as the Underwriters may reasonably
request. Prior to the date on which the Base Prospectus and the Prospectus
Supplement are available, the Company will furnish to the Underwriters and
counsel for the Underwriters, without charge as many copies of the Preliminary
FWP and each Issuer Free Writing Prospectus as the Underwriters may reasonably
request.
(d) The Company will furnish such information, execute such
instruments and take such action, if any, as may be required to qualify the
Offered Certificates for sale under the laws of such jurisdictions as the
Underwriters may designate and will maintain such qualification in effect so
long as required for the distribution of the Offered Certificates; provided,
however, the Company shall not be required to qualify to do business in any
jurisdiction where it is not now so qualified or to take any action that would
subject it to general or unlimited service of process in any jurisdiction where
it is not now so subject.
(e) Whether or not the transactions contemplated by this Agreement
are consummated, the Company shall pay all costs and expenses in connection with
the transactions herein contemplated, including, but not limited to, the fees
and disbursements of its counsel and of counsel to the Underwriters, the fees
and disbursements of accountants for the Company, the costs and expenses in
connection with the qualification, or exemption from qualification, of the
Offered Certificates under state securities or "blue sky" laws (including filing
fees and reasonable fees and disbursements of counsel in connection therewith),
the preparation of any blue sky survey, any determination of the eligibility of
the Offered Certificates for investment by institutional investors and the
preparation of any legal investment survey, all fees and expenses incurred in
connection with the registration and delivery of the Offered Certificates under
the Act, and all other fees or expenses in connection with the preparation and
filing of the Registration Statement, any Free Writing Prospectus, the
Prospectus and amendments and supplements to any of the foregoing, including all
printing costs associated therewith, and the mailing and delivery of copies
thereof to the Underwriters and dealers, in the quantities specified above, all
costs and expenses related to the transfer and delivery of the Offered
Certificates to the Underwriters, including any transfer or other taxes payable
thereon, the cost of printing the Offered Certificates, the upfront costs and
charges of any transfer agent, registrar or depository, the fees and expenses of
the rating agencies incurred in connection with the issuance and sale of the
Offered Certificates, the out-of-pocket expenses of each Underwriter incurred in
connection with the purchase and sale of the Offered Certificates and all other
costs and expenses incident to the performance of the obligations of the Company
hereunder for which provision is not otherwise made in this Section 5(e).
(f) The Company acknowledges and agrees that each Underwriter in
providing investment banking services to the Company in connection with the
offering, including in acting pursuant to the terms of this Agreement, has acted
and is acting as an independent contractor and not as a fiduciary and the
Company does not intend such Underwriter to act in any capacity other than
independent contractor, including as a fiduciary or in any other position of
higher trust.
(g) The Company will, pursuant to reasonable procedures developed in
good faith, retain copies of each Issuer Free Writing Prospectus or any
materials used in a Road Show (as defined in Rule 433 of the Act) that are
required to be retained by the Company pursuant to the Act, to the extent not
filed with the Commission in accordance with Rule 433 under the Act.
6. Conditions to the Obligations of the Underwriters. The respective
rights and obligations of the Underwriters hereunder shall be subject to the
accuracy of the representations and warranties on the part of the Company
contained herein as of the date hereof and the Closing Date, to the accuracy of
the statements of the Company made in any certificates pursuant to the
provisions hereof, to the performance by the Company of its obligations
hereunder and to the following additional conditions with respect to the Offered
Certificates:
(a) No stop order suspending the effectiveness of the Registration
Statement shall have been issued and no proceedings for that purpose shall have
been instituted or threatened; and the Prospectus Supplement shall have been
filed with the Commission within the time period prescribed by the Commission.
(b) The Company shall have delivered to you a certificate, dated the
Closing Date, of any president or vice president of the Company to the effect
that the signatory of such certificate has carefully examined the Registration
Statement, the Time of Sale Information, this Agreement and the Prospectus and
that: (i) the representations and warranties of the Company in this Agreement
are true and correct in all material respects on and as of the Closing Date with
the same effect as if made on the Closing Date, (ii) the Company has complied
with all the agreements and satisfied all the conditions on its part to be
performed or satisfied on or prior to the Closing Date, (iii) no stop order
suspending the effectiveness of the Registration Statement has been issued and
no proceedings for that purpose have been instituted or, to the Company's
knowledge, threatened, (iv) no notification has been received by the Company
with respect to the suspension of the qualification of the Offered Certificates
for sale in any jurisdiction or the initiation or threatening of any proceeding
for such purpose and (iv) nothing has come to his/her attention that would lead
him/her to believe that the Time of Sale Information, as of the Time of Sale, or
the Prospectus, as of the Closing Date, contains any untrue statement of a
material fact or omits to state any material fact necessary in order to make the
statements therein, in light of the circumstances under which they were made,
not misleading.
(c) a good standing certificate regarding the Company from the
Secretary of State of the State of Delaware, dated not earlier than 30 days
prior to the Closing Date;
(d) an officer's certificate, dated the Closing Date and signed by
the secretary or an assistant secretary of the Company, to the effect that each
individual who, as an officer or representative of the Company, signed this
Agreement, the Mortgage Loan Purchase Agreements, the Pooling and Servicing
Agreement or any other document or certificate delivered on or before the
Closing Date in connection with the transactions contemplated herein or in the
Mortgage Loan Purchase Agreements or in the Pooling and Servicing Agreement, was
at the respective times of such signing and delivery, and is as of the Closing
Date, duly elected or appointed, qualified and acting as such officer or
representative, and the signatures of such persons appearing on such documents
and certificates are their genuine signatures. Such officer's certificate shall
be accompanied by true and complete copies (certified as such by the secretary
or an assistant secretary of the Company) of the organizational documents of the
Company, as in effect on the Closing Date, and of the resolutions of the Company
and any required shareholder consent relating to the transactions contemplated
in this Agreement, the Mortgage Loan Purchase Agreements and/or the Pooling and
Servicing Agreement.
(e) The Underwriters shall have received from Cadwalader, Xxxxxxxxxx
& Xxxx LLP, counsel for the Company, a favorable opinion, dated the Closing
Date, that is satisfactory in form and substance to counsel for the
Underwriters.
(f) The Underwriters shall have received from in-house counsel for
the Company, a favorable opinion, dated the Closing Date, that is satisfactory
in form and substance to counsel for the Underwriters.
Such opinion (a) may express counsel's reliance as to factual
matters on certificates of government and agency officials and the
representations and warranties made by, and on certificates or other documents
furnished by officers of, the parties to this Agreement, the Mortgage Loan
Purchase Agreements and the Pooling and Servicing Agreement and (b) may be
qualified as an opinion only on the law of the State of New York, the General
Corporation Law of the State of Delaware and the federal law of the United
States of America.
(g) The Underwriters shall have received from counsel for each of
the Master Servicers, the Special Servicer, the Trustee and the Certificate
Administrator a favorable opinion, dated the Closing Date, with respect to such
matters as the Underwriters shall have reasonably requested and in form and
substance satisfactory to counsel for the Underwriters, which will include an
opinion as to the compliance of the disclosure with respect to each such party
with the requirements of Regulation AB and that such disclosure does not contain
an untrue statement of any material fact or omit to state a material fact
necessary in order to make the statements therein (in the case of any item
comprising the Time of Sale Information, when read in connection with the other
items comprising the Time of Sale Information delivered to investors in the
Offered Certificates as of the applicable Time of Sale), in light of the
circumstances under which they were made, not misleading. Any such opinions
shall be dated the Closing Date and addressed to the Underwriters or accompanied
by reliance letters to the Underwriters or shall state that the Underwriters may
rely upon them.
(h) The Underwriters shall have received from Cadwalader, Xxxxxxxxxx
& Xxxx LLP, counsel for the Underwriters, a favorable opinion, dated the Closing
Date and satisfactory in form and substance to the Underwriters.
(i) The Underwriters shall have received from Ernst & Young,
certified public accountants, a letter dated the Closing Date and satisfactory
in form and substance to the Underwriters and counsel for the Underwriters
stating in effect that using the assumptions and methodology used by the
Company, all of which shall be described in such letter, they have recalculated
such numbers and percentages set forth in the Preliminary FWP, the Revised FWPs
and the Prospectus as the Underwriters may reasonably request and as are agreed
to by Ernst & Young, compared the results of their calculations to the
corresponding items in the Preliminary FWP, the Revised FWPs and the Prospectus,
and found each such number and percentage set forth in the Preliminary FWP, the
Revised FWPs and the Prospectus to be in agreement with the results of such
calculations.
(j) The Offered Certificates listed on Schedule I hereto shall have
been rated as indicated on such Schedule I by the rating agency or agencies
indicated.
(k) The Underwriters shall have received from counsel for each Loan
Seller a favorable opinion, dated the Closing Date and from the Loan Seller an
Officer's Certificate as set forth in Section 8(b) of each Mortgage Loan
Purchase Agreement, each in form and substance satisfactory to counsel for the
Underwriters.
(l) All proceedings in connection with the transactions contemplated
by this Agreement, and all documents incident hereto and thereto, shall be
satisfactory in form and substance to the Underwriters and counsel for the
Underwriters, and the Underwriters and counsel for the Underwriters shall have
received such additional information, opinions, certificates and documents as
they may reasonably request.
(m) Subsequent to the date hereof, there shall not have occurred any
change, or any development involving a prospective change, in or affecting the
business or properties of the Depositor or a Mortgage Loan Seller (including any
of the Mortgage Loans) which such Underwriter concludes, in the reasonable
judgment of such Underwriter, materially impairs the investment quality of the
Certificates so as to make it impractical or inadvisable to proceed with the
public offering or the delivery of the Certificates as contemplated by the Time
of Sale Information (excluding the Corrective Information) and the Prospectus.
If any of the conditions specified in this Section 6 shall not have
been fulfilled in all material respects when and as provided by this Agreement,
or if any of the opinions and certificates mentioned above or elsewhere in this
Agreement shall not be in all material respects reasonably satisfactory in form
and substance to the Underwriters and counsel for the Underwriters, this
Agreement and all obligations of the Underwriters hereunder may be canceled on,
or at any time prior to, the Closing Date by the Underwriters. Notice of such
cancellation shall be given to the Company in writing, by telephone or by either
telegraph or telecopier confirmed in writing.
7. Reimbursement of Underwriters' Expenses. If the sale of any
Offered Certificates provided for herein is not consummated because any
condition to the obligations of the Underwriters set forth in Section 6 hereof
is not satisfied or because of any refusal, inability or failure on the part of
the Company to perform any agreement herein or comply with any provision hereof
other than by reason of a default by any of the Underwriters or because of
termination of this Agreement pursuant to Section 10 hereof, the Company will
reimburse the Underwriters severally upon demand for all out-of-pocket expenses
(including reasonable fees and disbursements of counsel) that shall have been
incurred by them in connection with the proposed purchase and sale of such
Offered Certificates.
8. Indemnification and Contribution.
(a) The Company will indemnify and hold harmless each Underwriter,
its officers and directors, and each person, if any, who controls such
Underwriter within the meaning of the Act or the Securities Exchange Act of
1934, as amended (the "Exchange Act"), against any and all losses, claims,
damages, costs, expenses or liabilities, joint or several, to which any such
indemnified party may become subject, under the Act, the Exchange Act or other
federal or state statutory law or regulation, at common law or otherwise,
insofar as such losses, claims, damages, costs, expenses or liabilities (or
actions in respect thereof) arise out of or are based upon (i) any untrue
statement or alleged untrue statement of a material fact contained in any part
of the Registration Statement, the Prospectus, the Diskette (as defined below)
or any revision or amendment thereof or supplement thereto, or the omission or
alleged omission to state therein a material fact required to be stated therein
or necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading or (ii) any untrue
statement or alleged untrue statement of any material fact contained in (x) any
Issuer Free Writing Prospectus (as defined in Section 9(e)(i) hereof) or (y) any
"issuer information" (as defined in Rule 433(h) under the Act) ("Issuer
Information") contained in (1) any Underwriter Free Writing Prospectus (as
defined in Section 9(b) hereof) prepared by or on behalf of such Underwriter, or
(2) any Free Writing Prospectus that is required to be filed pursuant to Section
9(e)(iii), Section 9(e)(iv) or Section 9(h) hereof (clauses (x) and (y)
collectively, the "Issuer Disclosure Materials"), or the omission or alleged
omission to state therein a material fact necessary in order to make the
statements therein (when read in connection with the other initial Time of Sale
Information or the other revised Time of Sale Information in connection with a
Subsequent Time of Sale), in light of the circumstances under which they were
made, not misleading, which untrue statement or omission referred to above in
this clause (ii) was not corrected by information subsequently supplied by the
Company to such Underwriter a reasonable period of time prior to the sale to the
applicable investor of the Offered Certificates (including without limitation a
contract of sale). The Company shall reimburse any such indemnified party for
any legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending against such loss, claim, damage,
liability or action. Notwithstanding the foregoing, (i) the Company shall not be
liable in any such case if and to the extent that any such loss, claim, damage
or liability arises out of or is based upon any such untrue statement or alleged
untrue statement or omission or alleged omission made in reliance upon and in
conformity with (A) the Underwriter Supplied Information (as defined below); (B)
information regarding any Loan Seller, the Mortgage Loans sold by such Loan
Seller to the Company or the related Mortgaged Properties to the extent such
information is covered by the related Loan Seller in the indemnification
agreement entered into between such Loan Seller, the Depositor and the
Underwriters (the information in clause (B) referred to herein as the "Loan
Seller Information"); or (C) information regarding any Transaction Party to the
extent such information is covered by the related Transaction Party in the
indemnification agreement entered into between such party, the Depositor and the
Underwriters (such information, the "Transaction Party Information") and (ii)
such indemnity with respect to an untrue statement or omission of a material
fact made in any Issuer Disclosure Materials that are part of the initial Time
of Sale Information, shall not inure to the benefit of any Underwriter (or any
person controlling such Underwriter or any officer or director of any
Underwriter) asserting any such loss, claim, damage or liability based on a
claim by a purchaser of the Offered Certificates, which are the subject thereof,
if and to the extent that such loss, claim, damage or liability results from
such person not receiving a copy of any subsequent Issuer Disclosure Materials
correcting such untrue statement or omission of a material fact contained in any
subsequent Issuer Disclosure Materials that are part of the Time of Sale
Information so long as the Company delivered the corrected information to such
Underwriter a reasonable time prior to the Time of Sale. This indemnity
agreement will be in addition to any liability which the Company may otherwise
have. "Loan Detail" shall mean the information set forth in Annex A-1 and Annex
A-2 to the Prospectus Supplement. "Diskette" shall mean the information set
forth on the diskette attached to the Prospectus.
(b) Each Underwriter will, severally and not jointly, indemnify and
hold harmless the Company, each of its directors, each of its officers, and each
person who controls the Company within the meaning of either the Act or the
Exchange Act, to the same extent as the foregoing indemnity from the Company to
such Underwriter, but only with reference to (A) the Underwriter Supplied
Information provided by or relating to such Underwriter, which was not corrected
by a subsequent Underwriter Supplied Information supplied to the Company by such
Underwriter prior to the sale to the applicable investor of Offered Certificates
(including without limitation a contract of sale), or (B) any untrue statement
or alleged untrue statement of any material fact contained in any Free Writing
Prospectus described in Sections 9(g) and 9(h) or omission or alleged omission
to state in any such Free Writing Prospectus a material fact necessary in order
to make the statements therein (when read in conjunction with the Time of Sale
Information), in light of the circumstances under which they were made, not
misleading, which was not corrected by a subsequent Free Writing Prospectus
supplied to the Company by such Underwriter prior to the sale to the applicable
investor of Offered Certificates (including without limitation a contract of
sale); provided that no Underwriter shall be obligated to so indemnify and hold
harmless to the extent such losses, claims, damages, costs, expenses or
liabilities arise out of or are based upon (A) an untrue statement or alleged
untrue statement or omission or alleged omission contained in or made in
reliance on and in conformity with the Issuer Information, the Loan Sellers'
Information or the Transaction Party Information or (B) any errors in the
mathematical calculations reflected in such Free Writing Prospectus to the
extent such errors arise out of or are based upon errors in the Issuer
Information, the Loan Sellers' Information or the Transaction Party Information;
provided, further, no Underwriter shall be liable for any losses, claims,
damages, costs, expenses or liabilities arising out of or based upon any untrue
statement, alleged untrue statement, omission or alleged omission (including
those of a quantitative nature) that arise out of or are based upon an error or
omission in any Issuer Information supplied by the Company to the Underwriter,
which error or omission in such Issuer Information was not corrected by
information subsequently supplied by the Company to such Underwriter a
reasonable period of time prior to the sale to the applicable investor of
Offered Certificates (including without limitation a contract of sale). This
indemnity agreement will be in addition to any liability which any Underwriter
may otherwise have. The Company acknowledges that the statements set forth in
the second to last paragraph of the cover page and in the second paragraph and
the first, third, fourth and fifth sentences of the fifth paragraph under the
heading "Method of Distribution" in the Prospectus constitute the only
information furnished in writing by or on behalf of the several Underwriters for
inclusion in the documents referred to in the foregoing indemnity (other than
any Free Writing Prospectus furnished to the Company by any Underwriter) (the
"Underwriter Supplied Information"). Any Free Writing Prospectus furnished to
the Company by a particular Underwriter shall relate exclusively to and be the
several responsibility of such Underwriter, as applicable, and no other.
(c) Promptly after receipt by an indemnified party under this
Section 8 of notice of the commencement of any action, such indemnified party
will, if a claim in respect thereof is to be made against the indemnifying party
under this Section 8, notify the indemnifying party in writing of the
commencement thereof, but the failure to notify the indemnifying party shall not
relieve the indemnifying party from any liability which it may have under
paragraph (a) or (b) of this Section 8, except to the extent that it has been
materially prejudiced by such failure and, provided, further, the omission so to
notify the indemnifying party will not relieve it from any liability which it
may have to any indemnified party otherwise than under this Section 8. Upon
request of the indemnified party, the indemnifying party shall retain counsel
satisfactory to the indemnified party to represent the indemnified party and any
others the indemnifying party may designate in such proceeding and shall pay the
fees and disbursements of such counsel related to such proceeding as incurred.
In case any such action is brought against any indemnified party, and it
notifies the indemnifying party of the commencement thereof, the indemnifying
party will be entitled to participate therein and, to the extent that it may
elect by written notice delivered to the indemnified party promptly after
receiving the aforesaid notice from such indemnified party, to assume the
defense thereof, with counsel satisfactory to such indemnified party (which may
be counsel representing the indemnifying party); provided, however, if the
defendants in any such action include both the indemnified party and the
indemnifying party and the indemnified party shall have reasonably concluded
that there may be legal defenses available to it and/or other indemnified
parties which are different from or additional to those available to the
indemnifying party, the indemnified party or parties shall have the right to
select separate counsel (and one local counsel, if it deems it so necessary) to
assert such legal defenses and to otherwise participate in the defense of such
action on behalf of such indemnified party or parties. Upon receipt of notice
from the indemnifying party to such indemnified party of its election so to
assume the defense of such action and approval by the indemnified party of
counsel, the indemnifying party will not be liable to such indemnified party
under this Section 8 for any legal or other expenses subsequently incurred by
such indemnified party in connection with the defense thereof unless (i) the
indemnified party shall have employed separate counsel in connection with the
assertion of legal defenses in accordance with the proviso to the immediately
preceding sentence (it being understood, however, that the indemnifying party
shall not be liable for the expenses of more than one separate counsel (in
addition to local counsel), approved by the Underwriters in the case of
paragraph (a) of this Section 8 or the Company in the case of paragraph (b) of
this Section 8, representing the indemnified parties under such paragraph who
are parties to such action), (ii) the indemnifying party shall not have employed
counsel satisfactory to the indemnified party to represent the indemnified party
within a reasonable time after notice of commencement of the action or (iii) the
indemnifying party has authorized in writing the employment of counsel for the
indemnified party at the expense of the indemnifying party. The indemnifying
party shall not be liable for any settlement of any proceeding effected without
its written consent (which consent shall not be unreasonably withheld), but if
settled with such written consent or if there shall be a final judgment for the
plaintiff, the indemnifying party agrees to indemnify the indemnified party, but
only to the extent provided herein, from and against any loss, damage or
liability by reason of such settlement or judgment. If the indemnifying party
assumes the defense of any proceeding, it shall be entitled to settle such
proceeding with the written consent of the indemnified party, which consent
shall not be unreasonably withheld or delayed, or, if such settlement (i) does
not include a statement as to or an admission of fault, culpability or a failure
to act by or on behalf of any such indemnified party, and (ii) includes an
unconditional release of such indemnified party from all liability on claims
that are the subject matter of such proceeding, without the consent of the
indemnified party.
(d) If the indemnification provided for in paragraph (a) or (b) of
this Section 8 is applicable in accordance with its terms, but is unavailable or
insufficient to hold harmless an indemnified party under such paragraph (a) or
(b) above, then in order to provide for just and equitable contribution, each
indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of the losses, claims, damages, costs, expenses or
liabilities referred to in such paragraph (a) or (b) above in such proportion as
is appropriate to reflect (i) the relative benefits received by the indemnifying
party or parties on the one hand and the indemnified party or parties on the
other from the offering of the Offered Certificates or (ii) if the allocation
provided by the foregoing clause (i) is not permitted by applicable law, not
only such relative benefits but also the relative fault of the indemnifying
party or parties on the one hand and the indemnified party or parties on the
other in connection with the statements or omissions or alleged statements or
omissions that resulted in such losses, claims, damages, costs, expenses or
liabilities, as well as any other relevant equitable considerations. The
relative benefits received by the Company on the one hand and any Underwriter on
the other shall be deemed to be in the same proportion as the total proceeds
from the issuance and sale of the Offered Certificates under this Agreement
(before deducting expenses) received by the Company bear to the total
underwriting discounts or commissions received by such Underwriter. The relative
fault of the parties shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by the Company on the one hand, or such Underwriter on the other, the
parties' relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission or alleged statement or omission,
and any other equitable considerations appropriate in the circumstances. The
Company and the Underwriters agree that it would not be just and equitable if
the amount of such contribution were determined by pro rata or per capita
allocation or by any other method of allocation that does not take into account
the equitable considerations referred to in this subsection (d). The amount paid
or payable by an indemnified party as a result of the losses, claims, damages,
expenses or liabilities referred to in the first sentence of this subsection (d)
shall be deemed to include any legal or other expenses reasonably incurred by
such indemnified party in connection with investigating, preparing for or
defending against any action or claim which is the subject of this subsection
(d) subject to the limitations therein provided under subsection (c).
Notwithstanding anything to the contrary in this paragraph (d), no
person guilty of fraudulent misrepresentation (within the meaning of Section 11
(f) of the Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. For purposes of this Section 8,
each person who controls an Underwriter within the meaning of the Act or the
Exchange Act and each officer and director of an Underwriter shall have the same
rights to contribution as such Underwriter, and each person who controls the
Company within the meaning of the Act or the Exchange Act, each officer and
director of the Company shall have the same rights to contribution as the
Company, subject in each case to the preceding sentence of this paragraph (d).
Any party entitled to contribution will, promptly after receipt of notice of
commencement of any action, suit or proceeding against such party in respect of
which a claim for contribution may be made against another party or parties
under this paragraph (d), notify such party or parties from whom contribution
may be sought, but the omission to so notify such party or parties shall not
relieve the party or parties from whom contribution may be sought from any other
obligation it or they may have hereunder or otherwise than under this paragraph
(d).
Notwithstanding the provisions of this Section 8(d), no Underwriter
shall be required to contribute any amount in excess of the amount by which the
total underwriting discounts, commissions and other fees received by such
Underwriter in connection with the offering of the Offered Certificates exceeds
the amount of damages that such Underwriter has otherwise been required to pay
by reason of any such untrue or alleged untrue statement or omission or alleged
omission.
The Underwriters' respective obligations to contribute pursuant to
this Section 8 are several in proportion to the respective amount of Offered
Certificates they have purchased hereunder, and not joint.
9. Offering Communications; Free Writing Prospectuses
(a) Unless preceded or accompanied by a prospectus satisfying the
requirements of Section 10(a) of the Act, no Underwriter shall convey or deliver
any written communication to any person in connection with the initial offering
of the Certificates, unless such written communication (i) is made in reliance
on Rule 134 under the Act, (ii) is made in reliance on Rule 172 under the Act,
(iii) constitutes a prospectus satisfying the requirements of Rule 430B under
the Act or (iv) constitutes a "free writing prospectus," as defined in Rule 405
under the Act (a "Free Writing Prospectus"). Without limitation thereby, without
the prior written consent of the Company (which consent may be withheld for any
reason), no Underwriter shall prepare, convey or deliver in connection with the
initial offering of the Certificates any Free Writing Prospectus or "ABS
informational and computational material," as defined in Item 1101(a) of
Regulation AB under the Act ("ABS Informational and Computational Material" and
together with any Free Writing Prospectus "Disclosure Information"), in reliance
upon Rules 167 and 426 under the Act other than materials provided to it by the
Company, including Issuer Free Writing Prospectuses; provided that
notwithstanding the foregoing, each Underwriter may use an Underwriter Free
Writing Prospectus that does not include Issuer Information without obtaining
the prior written consent of the Company.
(b) Each Underwriter shall deliver to the Company:
(i) any Free Writing Prospectus that was prepared by or on behalf of
such Underwriter or any affiliate thereof (each, an "Underwriter Free
Writing Prospectus") that contains any Issuer Information by no later than
one (1) business day prior to the date of first use thereof or such later
date as may be agreed to by the Company; and
(ii) any Free Writing Prospectus or portion thereof prepared by or
on behalf of such Underwriter that contains only a description of the
final terms of the Offered Certificates by no later than the later of (A)
the date such final terms have been established for all classes of the
Offered Certificates or (B) the date of first use.
Notwithstanding the foregoing, any Free Writing Prospectus that
contains only ABS Informational and Computational Materials may be delivered by
an Underwriter to the Company not later than the later of (A) one (1) business
day prior to the due date for filing of the Prospectus pursuant to Rule 424(b)
under the Act or (B) the date of first use of such Free Writing Prospectus.
(c) Each Underwriter represents and warrants to the Company that the
Free Writing Prospectuses to be furnished to the Company by such Underwriter
pursuant to Section 9(b) hereof will constitute all Free Writing Prospectuses of
the type described therein that were furnished to prospective investors by such
Underwriter in connection with its offer and sale of the Certificates.
(d) Each Underwriter represents and warrants to the Company that
each Free Writing Prospectus (other than an Issuer Free Writing Prospectus)
required to be provided by it to the Company pursuant to Section 9(b) hereof did
not, as of the date such Free Writing Prospectus was conveyed or delivered to
any prospective investor, include any untrue statement of a material fact or
omit to state any material fact required to be stated therein or necessary to
make the statements contained therein, in light of the circumstances under which
they were made, not misleading and that each such Free Writing Prospectus
complied with Rules 164, 167, 426 and 433 under the Act; provided, however, no
Underwriter makes any representation or warranty to the extent such
misstatements or omissions are based upon or arise out of an untrue statement or
omission in the Issuer Information supplied by the Company to such Underwriter,
the Loan Seller Information or the Transaction Party Information, which
information was not corrected by information subsequently supplied by the
Company, the related Loan Seller or the related Transaction Party to such
Underwriter prior to the sale to such investor of the Offered Certificates
(including without limitation, by means of a contract of sale).
(e) The Company agrees to file with the Commission the following:
(i) Any Free Writing Prospectus that constitutes an "issuer free
writing prospectus," as defined in Rule 433(h) under the Act (each, an
"Issuer Free Writing Prospectus");
(ii) Any Free Writing Prospectus or portion thereof delivered by an
Underwriter to the Company pursuant to Section 9(b) hereof (but not any
subsequent Free Writing Prospectus containing only information prepared by
or on behalf of an Underwriter on the basis of or derived from Issuer
Information previously filed);
(iii) Any Free Writing Prospectus or portion thereof that contains a
description of the final terms of the Offered Certificates, after such
terms have been established for all classes in the offering; and
(iv) Any Free Writing Prospectus for which the Company or any person
acting on its behalf provided, authorized or approved information that is
prepared and published or disseminated by a person unaffiliated with the
Company or any other offering participant that is in the business of
publishing, radio or television broadcasting or otherwise disseminating
communications.
(f) Any Free Writing Prospectus required to be filed pursuant to
Section 9(e) hereof by the Company shall be filed with the Commission not later
than the date of first use of the Free Writing Prospectus, except that:
(i) any Free Writing Prospectus or portion thereof required to be
filed that contains only a description of the final terms of the Offered
Certificates may be filed by the Company within two (2) days of the later
of the date such final terms have been established for all classes of
Certificates and the date of first use;
(ii) any Free Writing Prospectus or portion thereof required to be
filed that contains only ABS Informational and Computational Material may
be filed by the Company with the Commission not later than the later of
the due date for filing of the Prospectus pursuant to Rule 424(b) under
the Act or two (2) business days after the date of first use of such Free
Writing Prospectus; and
(iii) any Free Writing Prospectus required to be filed pursuant to
Section 9(e)(iv) hereof may, if no payment has been made or consideration
has been given by or on behalf of the Company for the Free Writing
Prospectus or its dissemination, be filed by the Company with the
Commission not later than four (4) business days after the Company becomes
aware of the publication, radio or television broadcast or other
dissemination of such Free Writing Prospectus.
(g) Each Underwriter (with the reasonable cooperation of the
Company) shall file with the Commission any Free Writing Prospectus (other than
a Free Writing Prospectus required to be delivered to the Company pursuant to
Section 9(b)) that is neither an Issuer Free Writing Prospectus nor contains
Issuer Information and that is used or referred to by such Underwriter or
distributed by or on behalf of such Underwriter in a manner reasonably designed
to lead to its broad, unrestricted dissemination not later than the date of the
first use of such Free Writing Prospectus.
(h) Notwithstanding the provisions of Section 9(g) hereof, each
Underwriter (with the reasonable cooperation of the Company) shall file with the
Commission any Free Writing Prospectus for which such Underwriter or any person
acting on its behalf provided, authorized or approved information that is
prepared and published or disseminated by a person unaffiliated with the Company
or any other offering participant that is in the business of publishing, radio
or television broadcasting or otherwise disseminating written communications and
for which no payment was made or consideration given by or on behalf of the
Company or any other offering participant, not later than four (4) business days
after such Underwriter becomes aware of the publication, radio or television
broadcast or other dissemination of such Free Writing Prospectus.
(i) Notwithstanding the provisions of Sections 9(e) (other than
9(e)(iii)) and 9(g) hereof, neither the Company nor any Underwriter shall be
required to file (A) Issuer Information contained in any Free Writing Prospectus
of an Underwriter or any offering participant other than the Company, if such
information is included or incorporated by reference in the Prospectus or a Free
Writing Prospectus previously filed with the Commission that relates to the
offering of the Certificates, (B) any Free Writing Prospectus or portion thereof
that contains a description of the Certificates or the offering of the
Certificates which does not reflect the final terms thereof or (C) any Free
Writing Prospectus that does not contain substantive changes from or additions
to a Free Writing Prospectus previously filed with the Commission.
(j) The Company and the Underwriters each agree that any Free
Writing Prospectuses prepared by each such party shall contain the following
legend:
"The depositor filed a registration statement (including a
prospectus) with the Securities and Exchange Commission (SEC File No.
333-130390) for the offering to which this communication relates. Before you
invest, you should read the prospectus in the registration statement and other
documents the depositor has filed with the Securities and Exchange Commission
for more complete information about the depositor, the issuing entity and this
offering. You may get these documents for free by visiting XXXXX on the
Securities and Exchange Commission web site at xxx.xxx.xxx. Alternatively, the
depositor, any underwriter or any dealer participating in the offering will
arrange to send you the prospectus after filing if you request it by calling
toll free 1-800-503-4611 or by email to the following address:
xxxxx.xxxxxx@xx.xxx."
(k) The Company and the Underwriters each agree to retain all Free
Writing Prospectuses that they have used and that are not required to be filed
pursuant to this Section 9 for a period of three (3) years following the initial
bona fide offering of the Certificates.
(l) In the event that the Company becomes aware, at any time between
the Time of Sale or any Subsequent Time of Sale and the Closing Date, that any
information in an Issuer Free Writing Prospectus or any Issuer Information
contains any untrue statement of a material fact or omits to state a material
fact necessary in order to make the statements contained therein (when read in
conjunction with the other applicable Time of Sale Information), in light of the
circumstances under which they were made, not misleading (a "Defective Issuer
Free Writing Prospectus"), the Company shall notify the Underwriters of such
untrue statement or omission within one business day after discovery (except for
any Underwriter that informed the Issuer of such untrue statement or omission)
and the Company shall, if requested by the Underwriters, prepare and deliver to
the Underwriters a Free Writing Prospectus that corrects the material
misstatement or omission in the Defective Issuer Free Writing Prospectus (such
corrected Issuer Free Writing Prospectus, a "Corrected Issuer Free Writing
Prospectus"). In the event that, at any time between the Time of Sale or any
Subsequent Time of Sale and the Closing Date, any Underwriter becomes aware that
any Underwriter Free Writing Prospectus delivered thereby to an investor in any
Offered Certificates contains any untrue statement of a material fact or omits
to state a material fact necessary in order to make the statements contained
therein (when read in conjunction with the applicable Time of Sale Information),
in light of the circumstances under which they were made, not misleading (a
"Defective Underwriter Free Writing Prospectus" and, together with a Defective
Issuer Free Writing Prospectus, a "Defective Free Writing Prospectus"), such
Underwriter shall notify the Company of such untrue statement or omission within
one business day after discovery (unless the Company was the party that informed
such Underwriter of such untrue statement or omission) and:
(i) The Underwriters shall, if requested by the Company:
(A) If the Defective Free Writing Prospectus was an
Underwriter Free Writing Prospectus, prepare a Free Writing
Prospectus that corrects the material misstatement in or omission
from the Defective Free Writing Prospectus (together with a
Corrected Issuer Free Writing Prospectus, a "Corrected Free Writing
Prospectus"), provided, that if an Underwriter Free Writing
Prospectus and Issuer Free Writing Prospectus are both determined to
be a Defective Free Writing Prospectus as a result of the same
untrue statement or omission in each such document, then the Issuer
shall prepare a single Corrected Free Writing Prospectus correcting
both such Defective Free Writing Prospectuses;
(B) Either (i) deliver the Corrected Free Writing Prospectus
to each investor which received the Defective Free Writing
Prospectus prior to entering into a contract of sale with such
investor, clearly identifying or highlighting the Corrective
Information, or (ii) deliver the Corrected Free Writing Prospectus
to each investor which received the Defective Free Writing
Prospectus and has entered into a contract of sale, clearly
identifying or highlighting the Corrective Information, and (x)
notify in writing each such investor in a prominent fashion that the
prior contract of sale with such investor has been terminated, and
of such investor's rights as a result of termination of such
agreement and (y) provide such investor with an opportunity to
affirmatively agree in writing to purchase the Certificates on the
terms described in the Corrected Free Writing Prospectus; and
(C) Comply with any other requirements for reformation of the
original contract of sale with such investor, as described in
Section IV.A.2.c of the Commission's Securities Offering Reform
Release No. 33-8591.
(m) In the event that a Defective Free Writing Prospectus was an
Issuer Free Writing Prospectus and the defective information was not Underwriter
Supplied Information, Loan Seller Information or Transaction Party Information
and the Underwriters shall in good faith incur any costs to an investor in
connection with the reformation of the contract of sale with the investor, the
Company agrees to reimburse the Underwriters for such costs.
(n) Each Underwriter covenants with the Company that, upon
reasonable request, it will make available to the Company such personnel as are
familiar with the Underwriter's compliance procedures for the purpose of
answering questions concerning the Underwriter's practices and procedures for
the preparation and dissemination of written materials concerning the Offered
Certificates to prospective investors prior to the delivery of the final
Prospectus to such investors.
(o) Each Underwriter covenants with the Company that after the final
Prospectus is available the Underwriter shall not distribute any written
information concerning the Certificates to a prospective investor unless such
information is preceded or accompanied by the final Prospectus.
10. Termination or Default by an Underwriter. This Agreement shall
be subject to termination in the absolute discretion of the Underwriters by
notice given to the Company prior to delivery of and payment for all Offered
Certificates if prior to such time (i) trading in securities of the Company or
DBS or any affiliate of either on any major securities exchange on which such
securities are commonly traded shall have been suspended or limited, or (ii)
trading in securities generally on the New York Stock Exchange or the
over-the-counter market shall have been suspended or materially limited or
minimum prices shall have been established on such exchange, or (iii) a banking
moratorium shall have been declared by either federal or New York State
authorities, or (iv) there shall have occurred any outbreak or material
escalation of hostilities or other calamity or crisis, the effect of which on
the financial markets of the United States is such as to make it, in the
reasonable judgment of the Underwriters, impractical to market the Offered
Certificates on the terms specified in this Agreement. In the event of a
termination pursuant to this Section 10, fees and expenses of the Underwriters
shall be paid by the Company pursuant to Section 7 of this Agreement.
11. Representations and Indemnities to Survive. The respective
agreements, representations, warranties, indemnities and other statements of the
Company or its officers and the Underwriters set forth in or made pursuant to
this Agreement will remain in full force and effect, regardless of any
investigation made by or on behalf of any Underwriter or the Company or any of
the officers, directors or controlling persons referred to in Section 8 hereof,
and will survive delivery of and payment for the Offered Certificates. The
provisions of Sections 5(e), 7, 8 and 12 hereof shall survive the termination or
cancellation of this Agreement.
12. Obligations of GACC. GACC agrees with the Underwriters, for the
sole and exclusive benefit of the Underwriters and each of their respective
officers, directors and any other person, if any, who controls the Underwriters
within the meaning of the Act or the Exchange Act and not for the benefit of any
assignee thereof or any other person or persons dealing with the Underwriters,
to indemnify and hold harmless the Underwriters and their respective officers,
directors and control persons referred to in Section 8 hereof against any
failure by the Company to perform its obligations to the Underwriters and their
respective officers, directors and control persons pursuant to Section 8 hereof.
13. Notices. All communications hereunder will be in writing and
effective only on receipt, and, if sent to the Underwriters will be mailed,
delivered or either telegraphed or transmitted by telecopier and confirmed to
them at the addresses set forth on the cover page hereof; or, if sent to the
Company will be mailed, delivered or either telegraphed or transmitted by
telecopier and confirmed to it at 00 Xxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000,
Attention: Xxxxxx Xxxx, with a copy to Cadwalader, Xxxxxxxxxx & Xxxx LLP, Xxx
Xxxxx Xxxxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention: Xxxx Xxxxx, Esq.
14. Successors. This Agreement will inure to the benefit of and be
binding upon the parties hereto and their respective successors and the
officers, directors and controlling persons referred to in Section 8 hereof, and
their successors and assigns, and no other person will have any right or
obligation hereunder.
15. Applicable Law; Counterparts. This Agreement will be governed by
and construed under the laws of the State of New York without regard to the
conflict of law principles (other than Title 14 of Article 5 of the New York
General Obligations Law). This Agreement may be executed in any number of
counterparts, each of which shall for all purposes be deemed to be an original
and all of which shall together constitute but one and the same instrument.
If the foregoing is in accordance with your understanding of our
agreement, please sign and return to us a counterpart hereof, whereupon this
letter and your acceptance shall represent a binding agreement among the Company
and the several Underwriters.
Very truly yours,
DEUTSCHE MORTGAGE & ASSET RECEIVING
CORPORATION
By: /s/ Xxxxxxx X. Xxx
--------------------------------------
Name: Xxxxxxx X. Xxx
Title: Vice President
By: /s/ Xxxxx Xxxxxxxx
--------------------------------------
Name: Xxxxx Xxxxxxxx
Title: Vice President
Confirmed and accepted in New York, New York
as of the date first above written.
DEUTSCHE BANK SECURITIES INC.
By: /s/ Xxxxxxx X. Xxx
-----------------------------------
Name: Xxxxxxx X. Xxx
Title: Vice President
By: /s/ Xxxxx Xxxxxxxx
-----------------------------------
Name: Xxxxx Xxxxxxxx
Title: Vice President
CITIGROUP GLOBAL MARKETS INC.
By: /s/ Xxxxxx X. Xxxxx
-----------------------------------
Name: Xxxxxx X. Xxxxx
Title: Managing Director
CREDIT SUISSE SECURITIES (USA) LLC
By: /s/ Xxxxx Xxxxx
-----------------------------------
Name: Xxxxx Xxxxx
Title: Managing Director
SUNTRUST XXXXXXXX XXXXXXXX, INC.
By: /s/ Xxxxxx Xxxxxxx
-----------------------------------
Name: Xxxxxx Xxxxxxx
Title: Managing Director
Acknowledged and agreed solely as to Section 12:
GERMAN AMERICAN CAPITAL CORPORATION
By: /s/ Xxxxxxx X. Xxx
-----------------------------------
Name: Xxxxxxx X. Xxx
Title: Vice President
By: /s/ Xxxxx Xxxxxxxx
-----------------------------------
Name: Xxxxx Xxxxxxxx
Title: Vice President
EXHIBIT A
FIRST PAGE OF EACH FREE WRITING PROSPECTUS
FREE WRITING PROSPECTUS
FILED PURSUANT TO RULE 433
REGISTRATION STATEMENT NO.: 333-130390
The information in this free writing prospectus is not complete and may be
amended prior to the time of sale. This free writing prospectus is not an offer
to sell or the solicitation of an offer to purchase these securities, nor will
there be any sale of these securities, in any jurisdiction where that offer,
solicitation or sale is not permitted.
THE INFORMATION IN THIS FREE WRITING PROSPECTUS, DATED NOVEMBER 7, 2007
MAY BE AMENDED OR COMPLETED PRIOR TO SALE
$1,853,970,000 (Approximate)
CD 2007-CD5
Commercial Mortgage Pass-Through Certificates
----------
Citigroup Global Markets Realty Corp.
German American Capital Corporation
Artesia Mortgage Capital Corporation
Sponsors and Mortgage Loan Sellers
CWCapital LLC
SunTrust Bank
Mortgage Loan Sellers
----------
Deutsche Mortgage & Asset Receiving Corporation
Depositor
CD 2007-CD5 Mortgage Trust
Issuing Entity
The CD 2007-CD5 Commercial Mortgage Pass-Through Certificates will
represent beneficial ownership interests in, and represent obligations of, the
issuing entity only. The trust's assets will primarily be 161 fixed-rate
mortgage loans secured by first liens on 258 commercial, multifamily and
manufactured housing community properties. The CD 2007-CD5 Commercial Mortgage
Pass-Through Certificates are not obligations of Deutsche Bank AG, Deutsche
Mortgage & Asset Receiving Corporation, the sponsors or any of their respective
affiliates, and neither the certificates nor the underlying mortgage loans are
insured or guaranteed by any governmental agency.
Each class of certificates will receive distributions of interest,
principal or both, four business days following the determination date in each
month, commencing December 17, 2007. Credit enhancement will be provided by
certain classes of subordinate certificates that will be subordinate to certain
classes of senior certificates as described in this free writing prospectus
under "Description of the Offered Certificates--Subordination."
Certain characteristics of the certificates offered in this free writing
prospectus include:
Approximate
Initial Initial
Certificate Pass- Assumed Final Rated Final
or Notional Through Distribution Distribution Anticipated Ratings
Class Balance(2) Rate Date(3) Date(3) Fitch/Xxxxx'x/S&P(1)
-------------- ------------ ----------- ------------------ ----------------- --------------------
Class A-1(5) $ 42,300,000 (7) July 15, 2012 November 15, 2044 AAA/Aaa/AAA
Class A-2(5) $ 89,000,000 (7) October 15, 2012 November 15, 2044 AAA/Aaa/AAA
Class A-3(5) $ 39,400,000 (7) November 15, 2014 November 15, 2044 AAA/Aaa/AAA
Class A-AB(5) $ 51,700,000 (7) October 15, 2016 November 15, 0000 XXX/Xxx/XXX
Class A-4(5) $958,680,000 (7) August 15, 2017 November 15, 0000 XXX/Xxx/XXX
Class A-1A(5) $284,848,000 (7) September 15, 2017 November 15, 0000 XXX/Xxx/XXX
Class AM-FX(5) $167,726,000 (7) September 15, 2017 November 15, 2044 AAA/Aaa/AAA
Class A-MA(5) $ 40,693,000 (7) October 15, 2017 November 15, 0000 XXX/Xxx/XXX
Class AJ-FX(5) $110,780,000 (7) October 15, 2017 November 15, 2044 AAA/Aaa/AAA
Class A-JA(5) $ 26,959,000 (7) October 15, 2017 November 15, 2044 AAA/Aaa/AAA
Class B $ 20,942,000 (7) November 15, 2017 November 15, 2044 AA+/Aa1/AA+
Class C $ 20,942,000 (7) November 15, 2017 November 15, 2044 AA/Aa2/AA
----------
(Footnotes to table to begin on page S-4)
Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved these securities or determined that this
free writing prospectus or the accompanying prospectus are truthful or complete.
Any representation to the contrary is a criminal offense.
Investing in the certificates offered in this free writing prospectus
involves risks. See "Risk Factors" beginning on page S-45 of this free writing
prospectus and page 10 of the accompanying prospectus.
Deutsche Bank Securities Inc. and Citigroup Global Markets Inc. are
co-lead managers and are acting as joint bookrunning managers in the following
manner: Deutsche Bank Securities Inc. is acting as sole bookrunning manager with
respect to 50.7% of each class of offered certificates and Citigroup Global
Markets Inc. is acting as sole bookrunning manager with respect to 49.3% of each
class of offered certificates. SunTrust Xxxxxxxx Xxxxxxxx, Inc. and Credit
Suisse Securities (USA) LLC are acting as co-managers of the offering. The
underwriters will offer the certificates offered in this free writing prospectus
in the amounts to be set forth in the prospectus supplement to the public in
negotiated transactions at varying prices to be determined at the time of sale.
Deutsche Bank Securities Inc., Citigroup Global Markets Inc., SunTrust
Xxxxxxxx Xxxxxxxx, Inc. and Credit Suisse Securities (USA) LLC are required to
purchase the certificates offered in this free writing prospectus (in the
amounts to be set forth in the prospectus supplement) from Deutsche Mortgage &
Asset Receiving Corporation, subject to certain conditions. Deutsche Mortgage &
Asset Receiving Corporation expects to receive from the sale of the certificates
offered in this free writing prospectus approximately % of the initial aggregate
certificate balance of the certificates offered in this free writing prospectus,
plus accrued interest, before deducting expenses payable by it. The underwriters
expect to deliver the certificates offered in the free writing prospectus to
purchasers on or about November 29, 2007.
The depositor has filed a registration statement (including a prospectus)
with the Securities and Exchange Commission (SEC File No. 333-130390) for the
offering to which this communication relates. Before you invest, you should read
the prospectus in the registration statement and other documents the depositor
has filed with the Securities and Exchange Commission for more complete
information about the depositor, the issuing trust and this offering. You may
get these documents for free by visiting XXXXX on the Securities and Exchange
Commission web site at xxx.xxx.xxx. Alternatively, the depositor, any
underwriter or any dealer participating in the offering will arrange to send you
the prospectus after filing if you request it by calling toll free
1-800-503-4611 or by email to the following address: xxxxx.xxxxxx@xx.xxx.
Deutsche Bank Securities Citi
Co-Lead and Joint Bookrunning Manager Co-Lead and Joint Bookrunning Manager
SunTrust Xxxxxxxx Xxxxxxxx Credit Suisse
Co-Manager Co-Manager
--------------------------------------------------------------------------------
FREE WRITING PROSPECTUS
FILED PURSUANT TO RULE 433
REGISTRATION STATEMENT NO.: 333-130390
November 7, 2007
FREE WRITING PROSPECTUS
STRUCTURAL AND COLLATERAL TERM SHEET
$1,853,970,000
(Approximate Offered Certificates)
-----------------------------------------------------
CD 2007-CD5
-----------------------------------------------------
Commercial Mortgage Pass-Through Certificates
Deutsche Mortgage & Asset Receiving Corporation
Depositor
Citigroup Global Markets Realty Corp.
German American Capital Corporation
Artesia Mortgage Capital Corporation
Sponsors and Mortgage Loan Sellers
CWCapital LLC
SunTrust Bank
Mortgage Loan Sellers
LOGO LOGO
LOGO LOGO LOGO
Initial
Certificate Anticipated Expected
or Notional Ratings Subordination WAL Principal Assumed Final
Balance Fitch/Xxxxx'x/S&P Levels (yrs.) Window Distribution Date
------------ ----------------- ------------- -------- ----------- ------------------
Class A-1 $ 42,300,000 AAA / Aaa / AAA 30.000% 3.09 12/07-07/12 July 15, 2012
Class A-2 $ 89,000,000 AAA / Aaa / AAA 30.000% 4.66 07/12-10/12 October 15, 2012
Class A-3 $ 39,400,000 AAA / Aaa / AAA 30.000% 6.81 09/14-11/14 November 15, 2014
Class A-AB $ 51,700,000 AAA / Aaa / AAA 30.000% 6.92 10/12-10/16 October 15, 2016
Class A-4 $958,680,000 AAA / Aaa / AAA 30.000% 9.62 10/16-08/17 August 15, 2017
Class A-1A $284,848,000 AAA / Aaa / AAA 30.000% 8.03 12/07-09/17 September 15, 2017
Class AM-FX $167,726,000 AAA / Aaa / AAA 20.000% 9.79 08/17-09/17 September 15, 2017
Class A-MA $ 40,693,000 AAA / Aaa / AAA 20.000% 9.86 09/17-10/17 October 15, 2017
Class AJ-FX $110,780,000 AAA / Aaa / AAA 13.375% 9.87 09/17-10/17 October 15, 2017
Class A-JA $ 26,959,000 AAA / Aaa / AAA 13.375% 9.88 10/17-10/17 October 15, 2017
Class B $ 20,942,000 AA+ / Aa1 / AA+ 12.375% 9.95 10/17-11/17 November 15, 2017
Class C $ 20,942,000 AA / Aa2 / AA 11.375% 9.96 11/17-11/17 November 15, 2017
Deutsche Bank Securities Citi
Co-Lead and Joint Bookrunning Manager Co-Lead and Joint Bookrunning Manager
SunTrust Xxxxxxxx Xxxxxxxx Credit Suisse
Co-Manager Co-Manager
--------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the Securities and Exchange Commission (SEC File No. 333-130390) for the
offering to which this communication relates. Before you invest, you should read
the prospectus in the registration statement and other documents the depositor
has filed with the Securities and Exchange Commission for more complete
information about the depositor, the issuing trust and this offering. You may
get these documents for free by visiting XXXXX on the Securities and Exchange
Commission web site at xxx.xxx.xxx. Alternatively, the depositor, any
underwriter or any dealer participating in the offering will arrange to send you
the prospectus after filing if you request it by calling toll free
1-800-503-4611 or by email to the following address: xxxxx.xxxxxx@xx.xxx. The
offered certificates referred to in these materials, and the asset pool backing
them, are subject to modification or revision (including the possibility that
one or more classes of certificates may be split, combined or eliminated at any
time prior to issuance or availability of a final prospectus) and are offered on
a "when, as and if issued" basis. You understand that, when you are considering
the purchase of these certificates, a contract of sale will come into being no
sooner than the date on which the relevant class has been priced and we have
verified the allocation of certificates to be made to you; any "indications of
interest" expressed by you, and any "soft circles" generated by us, will not
create binding contractual obligations for you or us.
Filed Pursuant to Rule 433
File No.: 333-130390-05
November 19, 2007
UPDATE No. 1 to the CMBS New Issue Term Sheet Free Writing Prospectus dated
November 7, 2007 (the "Term Sheet FWP") and the Free Writing Prospectus dated
November 7, 2007 (the "November 7 FWP").
Capitalized terms used herein but not defined herein will have such meanings
ascribed to them in the November 7 FWP.
Deutsche Mortgage & Asset Receiving Corporation, Commercial Mortgage
Pass-Through Certificates, Series CD 2007-CD5
COLLATERAL UPDATE
With respect to the Mortgage Loan identified on Annex A-1 to the November 7 FWP
as "Quality King," representing approximately 1.92% of the Initial Outstanding
Pool Balance and 2.31% of the Initial Loan Group 1 Balance:
1. The Interest Rate for such Mortgage Loan is 7.41%. The UW NCF DSCR is
1.20x. The LTV Ratio at Maturity will be 58.1%. The principal balance of
the Mortgage Loan as of the related Maturity Date will be $35,485,061.
2. If (x) the EBITDA of one of the sponsors, Quality King Distributors, Inc.
("QKD"), declines by more than 25% from the level of QKD's EBITDA as of
August 2007 and QKD's net worth declines by more than 15% in any 6-month
period during the term of the Mortgage Loan or more than 25% from August
2007 or (y) QKD's net worth declines by more than 15% in any 6-month
period or more than 25% from the level of QKD's net worth as of August
2007 or (z) QKD's EBITDA declines by an additional 25% (beyond the initial
25% decline set forth in clause (x) above), then the borrower will be
required to post a letter of credit in the amount of $2,500,000, and cash
flow will be swept into an escrow, which will be capped at an amount
sufficient to cover the cost of releasing the property and carry debt
service for two years, as determined by the lender based on updated market
studies to be paid for by the borrower, which amount is required to be at
least $9,239,432.
3. QK Healthcare has recently informed the lender that it intends to
write-off approximately $9 million of inventory for merchandise that would
have been returned for manufacturer credit but for the manufacturer's
bankruptcy. QK Healthcare has not yet determined how to account for this
write-off and to what extent such write-off may reduce the EBITDA and/or
net worth of QK Healthcare and its parent. Such reduction to EBITDA and/or
net worth may be severe enough to result in a Trigger Event as described
under Lock Box/Cash Management/Letter of Credit in the Term Sheet FWP, in
which case the borrower may be required to post a letter of credit and, in
certain circumstances, cash management provisions will be in effect, in
each case as described in Term Sheet FWP.
Filed Pursuant to Rule 433
File No.: 333-130390-05
November 19, 2007
UPDATE No. 2 to the CMBS New Issue Term Sheet Free Writing Prospectus dated
November 7, 2007 (the "Term Sheet FWP") and the Free Writing Prospectus dated
November 7, 2007 (the "November 7 FWP").
Capitalized terms used herein but not defined herein will have such meanings
ascribed to them in the November 7 FWP.
Deutsche Mortgage & Asset Receiving Corporation, CD 2007-CD5 Commercial Mortgage
Pass-Through Certificates
COLLATERAL UPDATE
With respect to the Mortgage Loan identified on Annex A-1 to the November 7 FWP
as "Quality King," representing approximately 1.92% of the Initial Outstanding
Pool Balance and 2.31% of the Initial Loan Group 1 Balance, please note the
following:
1. General: The Interest Rate for such Mortgage Loan is 7.41%. The UW NCF
DSCR is 1.20x. The LTV Ratio at Maturity will be 58.1%. The principal
balance of the Mortgage Loan as of the related Maturity Date will be
$35,485,061.
2. "Lockbox/Cash Management/Letter of Credit" (pages B-70 to B-71 of the Term
Sheet FWP and Annex B to the November 7 FWP "Description of Top Ten
Mortgage Loans--Quality King"):
a. QKD Trigger #1. If QKD's EBITDA declines by more than 25% from
August 2007, but its net worth does not decline by more than 15% in
a six-month period, or more than 25% from August 2007, then the
borrower will be required to post a letter of credit in the amount
equivalent to the greater of one year's cumulative rent paid by QKD
or $ 4,628,405.00 in year 1. If QKD's EBITDA declines by an
additional 25% from the level at the occurrence of the QKD Trigger
#1, all excess cash flow will be swept into an escrow, which sweep
shall only be curable if QKD's EBITDA is restored to the required
minimum level and maintained at such level for a period of six
consecutive months.
b. QKD Trigger #2. If (x) QKD's EBITDA declines by more than
twenty-five percent (25%) from the level of QKD's EBITDA as of
August 2007 and QKD's net worth declines by more than fifteen
percent (15%) in any six (6) month period during the term of the
Loan or more than twenty-five percent (25%) from August 2007, or (y)
QKD's net worth declines by more than fifteen percent (15%) in any
six (6) month period during the term of the Loan or more than
twenty-five percent (25%) from the level of QKD's net worth as of
August 2007, or (z) QKD's EBITDA declines by an additional
twenty-five percent (25%) (beyond the initial twenty-five percent
(25%) decline set forth in subclause (x)), above, then the borrower
will be required to post a letter of credit in the amount of
$2,500,000, and cash flow will be swept into an escrow, which will
be capped at an amount sufficient to cover the cost of releasing
Filed Pursuant to Rule 433
File No. 333-130390-05
November 20, 2007
UPDATE No. 3 to the CMBS New Issue Term Sheet Free Writing Prospectus dated
November 7, 2007 (the "Term Sheet FWP") and the Free Writing Prospectus dated
November 7, 2007 (the "November 7 FWP").
Capitalized terms used herein but not defined herein will have such meanings
ascribed to them in the November 7 FWP.
Deutsche Mortgage & Asset Receiving Corporation, CD 2007-CD5 Commercial Mortgage
Pass-Through Certificates
STRUCTURE UPDATE
The Deutsche Mortgage Asset & Receiving Corporation, CD 2007-CD5 Commercial
Mortgage Pass-Through Certificates will no longer include three classes of
interest-only certificates, the Class XP, Class XS and Class XW Certificates,
and will instead include two classes of interest-only certificates, the Class XP
Certificates and the Class XS Certificates.
Only the Class XP Certificates will be registered with the Securities and
Exchange Commission and publicly offered pursuant to the Prospectus Supplement.
The Class XS Certificates will be exempt from the registration requirements of
the Securities Act of 1933 and privately offered.
The Class XP Certificates will be issued in book-entry form in minimum
denominations of $1,000,000, and in multiples of $1 in excess thereof.
Weighted Average Life Yield Sensitivity of the Class XP Certificates
The yield to maturity of the Class XP Certificates will be especially sensitive
to the prepayment, repurchase, default and loss experience on the Mortgage
Loans, which prepayment, repurchase, default and loss experience may fluctuate
significantly from time to time. A rapid rate of principal payments will have a
material negative effect on the yield to maturity of the Class XP Certificates.
There can be no assurance that the Mortgage Loans will prepay at any particular
rate. Prospective investors in the Class XP Certificates should fully consider
the associated risks, including the risk that such investors may not fully
recover their initial investment.
Certain Federal Income Tax Considerations
It is anticipated that the Class XP Certificates will be treated as having been
issued with original issue discount for federal income tax purposes in an amount
equal to the excess of all expected distributions of interest on the Class XP
Certificates (based on the Prepayment Assumption) over their issue price
(including accrued interest). Accruing income in such a manner could result in
the accrual of negative amounts for certain periods in the event of faster than
anticipated prepayments. Such negative amounts cannot be deducted currently but
may only be offset against future accruals of income on the Class XP
Certificates. However, although unclear, a holder of a Class XP Certificate may
be entitled to deduct a loss to the extent that its remaining tax basis exceeds
the maximum amount of future payments to which such Certificateholder would be
entitled if there were no further prepayments on the Mortgage Loans. Investors
in the Class XP Certificates should consult their tax advisors as to the manner
in which income should be accrued on the Class XP Certificates and the timing
and character of any loss that could result from an investment in the Class XP
Certificates. See Certain Federal Income Tax Consequences?Federal Income Tax
Consequences for REMIC Certificates" and?Taxation of Regular
Certificates?Original Issue Discount" in the Prospectus.
Ratings
A security rating does not represent any assessment of the yield to maturity
that investors may experience or the possibility that the holders of the Class
XP Certificates might not fully recover their initial investment in the event of
delinquencies or rapid prepayments of the Mortgage Loans (including both
voluntary and involuntary prepayments). As described herein, the amounts payable
with respect to the Class XP Certificates consist only of interest. If the
entire pool were to prepay in the initial month, with the result that the
Holders of Class XP Certificates receive only a single month's interest and thus
suffer a nearly complete loss of their investment, all amounts "due" to such
holders will nevertheless have been paid, and such result is consistent with the
rating received on the Class XP Certificates. Accordingly, the ratings of the
Class XP Certificates should be evaluated independently from similar ratings on
other types of securities. The ratings do not address the fact that the
Pass-Through Rates of any of the Offered Certificates, to the extent that they
are based on the Weighted Average Net Mortgage Pass-Through Rate, may be
affected by changes thereon.
Filed Pursuant to Rule 433
File No. 000-000000-00
CD 2007-CD5 - $2.09 Bln CMBS
Co-Leads/Jt Books: Deutsche Bank Securities Inc.
Citigroup Global Markets Inc.
Co-Managers: Credit Suisse Securities (USA) LLC
SunTrust Xxxxxxxx Xxxxxxxx, Inc.
Rating Agencies: Fitch/Xxxxx'x/S&P
Class Size(MM) F/M/S WAL Spread Coupon Yield Price CUSIP
A1 42.300 AAA/Aaa/AAA 3.11 S+100 5.17100% 5.245% 99.748261% 00000XXX0
A2 88.500 AAA/Aaa/AAA 4.66 S+111 5.65500% 5.543% 100.496881% 00000XXX0
A3 39.400 AAA/Aaa/AAA 6.81 S+117 5.88400% 5.824% 100.497600% 00000XXX0
XXX 52.000 AAA/Aaa/AAA 6.91 S+102 5.74500% 5.684% 100.499411% 00000XXX0
A4 958.880 AAA/Aaa/AAA 9.62 S+100 5.88600% 5.858% 100.493913% 00000XXX0
A1A 284.848 AAA/Aaa/AAA 8.03 NOT OFFERED
AM 168.726 AAA/Aaa/AAA 9.79 S+140 6.17932% 6.269% 100.312834% 00000XXX0
AMA 40.693 AAA/Aaa/AAA 9.86 NOT OFFERED
AJ 111.780 AAA/Aaa/AAA 9.87 S+175 6.17932% 6.624% 97.824509% 00000XXX0
XXX 26.959 AAA/Aaa/AAA 9.88 NOT OFFERED
B 20.942 AA+/Aa1/AA+ 9.96 S+215 6.17932% 7.029% 95.039122% 00000XXX0
C 20.942 AA/Aa2/AA 9.96 S+235 6.17932% 7.229% 93.693308% 00000XXX0
XP 2,039.879 AAA/Aaa/AAA
Collateral: 161 loans / 258 properties
Loan Sellers: Citigroup Global Markets Realty Corp. (43.8%)
German American Capital Corporation (33.9%)
Artesia Mortgage Capital Corporation (12.8%)
CWCapital LLC (5.5%)
SunTrust Bank (4.1%)
Property Types: Office 36.0%, Retail 16.7%, Multifamily 14.3%, Industrial
13.6%, Hotel 8.4%, Mix 6.4%, Other 4.7%
Geographic: NY 14.0%, DC 10.1%, CA 9.4%, MA 8.5%, TX 5.8%, Other 52.3%
DSCR/LTV: 1.35x / 68.0%
Expected Timing
Thu 11/29 Expected Settlement Date
SCHEDULE I
Underwriting Agreement, dated November 21, 2007.
Title and Description of Offered Certificates: CD 2007-CD5 Commercial Mortgage
Pass-Through Certificates
Initial Aggregate
Principal Amount Initial
Class or Notional Purchase Pass-Through
Designation Balance of Class Price(1) Rate Ratings(2)
-------------- ------------------- ------------- -------------- --------------
Class A-1 $42,300,000 99.748261% 5.171% AAA/Aaa/AAA
Class A-2 $88,500,000 100.496881% 5.655% AAA/Aaa/AAA
Class A-3 $39,400,000 100.497600% 5.884% AAA/Aaa/AAA
Class A-AB $52,000,000 100.499411% 5.745% AAA/Aaa/AAA
Class A-4 $958,880,000 100.493913% 5.886% AAA/Aaa/AAA
Class A-1A $284,848,000 100.500019% 5.800% AAA/Aaa/AAA
Class XP $2,039,879,000 1.294204% 0.259% AAA/Aaa/AAA
Class AM $168,726,000 98.650055% 6.179% AAA/Aaa/AAA
Class A-MA $40,693,000 100.312834% 6.179% AAA/Aaa/AAA
Class AJ $111,780,000 97.516785% 6.179% AAA/Aaa/AAA
Class A-JA $26,959,000 97.822337% 6.179% AAA/Aaa/AAA
Class B $20,942,000 95.039122% 6.179% AA+/Aa1/AA+
Class C $20,942,000 88.868413% 6.179% AA/Aa2/AA
------------
(1) Expressed as a percentage of the aggregate stated amount of the relevant
class of Offered Certificates to be purchased.
(2) By each of Fitch Inc., Xxxxx'x Investors Service Inc. and Standard &
Poor's Rating Services.
Closing Time, Date and Location: 10:00 a.m. on November 29, 2007, at the offices
of Cadwalader, Xxxxxxxxxx & Xxxx LLP, Xxx Xxxxx Xxxxxxxxx Xxxxxx, Xxx Xxxx, Xxx
Xxxx 00000.
Issuance and Delivery of Certificates: The Offered Certificates will be
delivered in book-entry form through the Same-Day Funds Settlement System of The
Depository Trust Company.
Deutsche Bank Citigroup SunTrust Credit Suisse
Securities, Global Markets Xxxxxxxx Securities
Class Inc. Inc. Xxxxxxxx, Inc. (USA) LLC
--------------- --------------- ---------------- --------------- ---------------
Class A-1 $21,455,056 $20,844,944 $- $-
Class A-2 $44,888,238 $43,611,762 $- $-
Class A-3 $19,984,142 $19,415,858 $- $-
Class A-AB $26,375,010 $25,624,990 $- $-
Class A-4 $486,355,182 $472,524,818 $- $-
Class A-1A $144,478,246 $140,369,754 $- $-
Class XP $1,034,650,552 $1,005,228,448 $- $-
Class AM $85,579,806 $83,146,194 $- $-
Class A-MA $20,639,967 $20,053,033 $- $-
Class AJ $56,696,127 $55,083,873 $- $-
Class A-JA $13,673,921 $13,285,079 $- $-
Class B $10,622,028 $10,319,972 $- $-
Class C $10,622,028 $10,319,972 $- $-
