Titan Europe 2007-1 (NHP) Limited - Irish Stock Exchange

ESTIMATED AVERAGE LIVES OF THE NOTES AND ASSUMPTIONS
Yield
The yield to maturity on any class of Notes will depend upon the price paid by the Noteholders, the interest
rate thereof from time to time, the rate and timing of the distributions of interest and principal in reduction of the
Principal Amount Outstanding of such class and the rate, timing and severity of losses on the Libra Loan and the
extent to which such losses are allocable in reduction of the Principal Amount Outstanding, as applicable, of
such class, as well as prevailing interest rates at the time of payment or loss realisation.
The yield to maturity on the Class X Notes will be highly sensitive to the rate and timing of principal
payments (including by reason of a voluntary or involuntary prepayment, default or liquidation) on the Libra
Loan. Investors in the Class X Notes should fully consider the associated risks, including the risk that a faster
than anticipated rate of principal payments in respect of the Libra Loan could result in a lower than expected
yield on the Class X Notes, and an earlier liquidation of the Libra Loan could result in the failure of such
investors to fully recoup their initial investments.
The rate of distributions of principal in reduction of the Principal Amount Outstanding of any class of
Notes, the aggregate amount of distributions of principal in respect of any class of Notes and the yield to
maturity of any class of Notes will be directly related to the rate of payments of principal on the Libra Loan and
the amount and timing of Borrower defaults. In addition, distributions in reduction of Principal Amount
Outstanding of any class of Notes may result from a repurchase of the Libra Loan made by the Loan Arranger
due to breaches of representations and warranties with respect to the Libra Loan described herein under
“Certain Characteristics of the Libra Loan and the Properties—Loan Sale Agreement”.
The Principal Amount Outstanding of any class of Notes may be reduced without distributions thereon as a
result of the occurrence and allocation of NAI, reducing the maximum amount distributable in respect of such
Notes, if applicable, as well as the amount of interest that would have accrued on such Notes in the absence of
such reduction. In general, an NAI occurs when the aggregate principal balance of a Loan is reduced without an
equal distribution to applicable Noteholders in reduction of the Principal Amount Outstanding of the Notes.
NAI is likely to occur only in connection with a default on the Libra Loan and the liquidation of the related
Properties or a reduction in the principal balance of the Libra Loan in an insolvency of the Borrower.
Because the accrual of interest on the Class X Notes is based upon the Principal Amount Outstanding of the
Class A Notes, Class B Notes, Class C Notes, Class D Notes and the Class E Notes, the yield to maturity on the
Class X Notes will be extremely sensitive to the rate and timing of prepayments of principal (including both
voluntary and involuntary prepayments, delinquencies, defaults and liquidations) on the Libra Loan and any
repurchase (or participation) with respect to breaches of representations and warranties with respect to the Libra
Loan to the extent such payments of principal are allocated to each such class in reduction of the Principal
Amount Outstanding thereof. The rate at which voluntary prepayments occur on the Libra Loan will be affected
by a variety of factors, including, without limitation, the terms of the Libra Loan, the level of prevailing interest
rates, the availability of mortgage credit, the occurrence of casualties or natural disasters and economic,
demographic, tax, legal and other factors, and no representation is made as to the anticipated rate of
prepayments on the Libra Loan.
Noteholders are entitled to receive distributions of quarterly payments when due to the extent they are either
covered by a P&I Advance or actually received. However, any defaulted quarterly payment for which no such
P&I Advance is made will tend to extend the weighted average lives of the Notes, whether or not a permitted
extension of the maturity date of the Libra Loan has been effected.
The rate of payments (including voluntary and involuntary prepayments) on mortgage loans is influenced
by a variety of economic, geographic, social and other factors, including the level of mortgage interest rates and
the rate at which borrowers default on their mortgage loans. The terms of the Libra Loan (in particular, the term
of any prepayments, the extent to which Prepayment Charges are due with respect to any principal prepayment
and the right of the mortgagee to apply casualty and compulsory purchase proceeds to prepay the Libra Loan)
may affect the rate of principal payments on the Libra Loan, and consequently, the yield to maturity of the
Classes of Notes. See “Certain Characteristics of the Libra Loan and the Properties” herein.
In addition, disproportionate principal payments (whether resulting from differences in scheduled balloon
payments or full or partial prepayments) on the Libra Loan may affect the yield on the Notes. Balloon payments
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