KBRA Assigns Preliminary Ratings to Three Classes of New York Liberty Development Corp. Second Priority Liberty Revenue Refunding Bonds, Series 2019 (Bank of America Tower at One Bryant Park Project)

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to the following New York Liberty Development Corp. Second Priority Liberty Revenue Refunding Bonds, Series 2019 (Bank of America Tower at One Bryant Park Project):

• Class 1: AA-
• Class 2: A-
• Class 3: BBB-

The above ratings utilized the KBRA’s Public Finance General Revenue Bond Methodology and to evaluate the collateral, KBRA utilized the U.S. CMBS Single Borrower & Large Loan Rating Methodology.

New York Liberty Development Corporation (the “Issuer”) will issue $650 million Tax-Exempt Second Priority Liberty Revenue Refunding Bonds, Series 2019 (Bank of America Tower at One Bryant Park Project) (the “Series 2019 Liberty Bonds”), consisting of three classes, under and pursuant to an Indenture of Trust (the “Indenture”). The respective ratings are based on the relative priority of payments from the collateral that secures the bonds. For additional details on the collateral please refer to the One Bryant Park Trust 2019-OBP Presale.

The proceeds of the Series 2019 Liberty Bonds will be used to redeem in whole a Taxable Series 2019 Bond, the proceeds of which were used to refinance a portion of site acquisition, development and construction costs of a 51-story, approximately 2.4 million rentable square foot office building (the “Facility”) within the City of New York used as office, retail, storage and theatre space. The Facility is ground leased to One Bryant Park LLC, a Delaware limited liability company (the “Borrower”) and serves as the New York City headquarters for Bank of America Corp.

Concurrently with the issuance of the Taxable Series 2019 Bond, the Issuer will make a $650.0 million loan to the Borrower (the “Liberty Debt Loan”) pursuant to a Liberty Debt Loan Agreement between the Issuer and the Borrower (the “Liberty Debt Loan Agreement”) pursuant to which the Borrower will be obligated to make loan payments (subject to a payment priority subordinate to the separate CMBS Loan ) to the Issuer in the amounts and at the times sufficient to pay the principal or redemption price of, and interest on, the Series 2019 Liberty Bonds as the same become due.

To secure the Borrower’s obligations under the Liberty Debt Loan Agreement and the CMBS Loan Agreement, the Borrower will enter into a Collateral Agency Agreement, pursuant to which the Collateral Agent will hold the security, including a mortgage on the Borrower’s leasehold interest in the Facility and a pledge and security interest in all of the Borrower’s personal property and all tenant leases and rental income relating to the Facility. Each of the Liberty Debt Loan and the CMBS Loan will be administered and serviced pursuant to a Servicing Agreement. Pursuant to the Servicing Agreement, the CMBS Loan will have a priority in payment over the Liberty Debt Loan, as set forth in the Servicing Agreement and in the Indenture. Further, the Indenture provides that, among the three Classes of the Series 2019 Liberty Bonds, the Class 1, Series 2019 Liberty Bonds will be senior in payment priority to the Class 2, Series 2019 Liberty Bonds, and which will in turn be senior in payment priority to the Class 3, Series 2019 Liberty Bonds. The Liberty Bonds are payable solely from the trust estate under the indenture and are not a general obligation of the Issuer or any other governmental entity. Further, the Issuer has no taxing authority.

Related Publications: (available at www.kbra.com)

• CMBS Presale Report: One Bryant Park Trust 2019-OBP

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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Contacts

Analytical Contacts:

William Cox, Senior Managing Director

(646) 731-2472

wcox@kbra.com

Alice Cheng, Director

(646) 731-2403

acheng@kbra.com