Windermere XIV Noteholder Meeting - Hatfield Philips

HATFIELD PHILIPS INTERNATIONAL
Maturity Defaults - We are the Lender of Last Resort
Primary Servicing Maturity Overview
→ 39 HPI-serviced loans with an outstanding principal balance of €4.6
billion matured in the last 12 months
→ Full payoffs at maturity were received on 12 loans (31%)
→ 19 loans (49%) were transferred to Special Servicing upon maturity
default
→ Only 8 loans (20%) were extended. In each case, HPI was able to
improve the credit profile and secure additional collateral in the
form of pay downs, cash flow sweeps, or escrow accounts
Full Payoff
Transfer to
Special
Servicing
Extension
Extension Philosophy
→ No cash flow leakage to the borrower
→ Additional collateral in the form of pay downs, cash flow sweeps, or escrow accounts
→ Security enhancements
→ Where possible, resolution strategies are structured as standstill agreements and not loan extensions
→ Borrower involvement in managing the collateral only where the sponsor has unique expertise and the ability to add value
→ We are the lender of last resort
• An extension must be the most expensive option compared to a refinance
• Progressive rate increase, including default interest and extension fees
• Credit enhancements, including additional cash reserves or letters of credit
• HPI’s workout strategies for maturity related defaults are designed to pursue payoff of the loan within the shortest possible
time frame
HPI │ OVERVIEW 6