Seven week countdown to Rams tender
If there's to be a tender for part of Rams' mortgage portfolio you'd guess it will be the $3.3 billion program for which the European bank is the market swap provider. Today's Herald Sun suggests ABN will step forward and refinance this program though Rams statement to the ASX appeared to suggest doubt that the European bank would do so.National Australia Bank in a media release yesterday conceded that it had "a range of options available to it, including funding the mortgage portfolio or holding these assets on balance sheet."That leaves ABN Amro to sort out terms with Rams management over a refinancing of a $3.3 billion loan pool or to let the process run its course and force an auction of the mortgages.If the latter, then the process is - according to a review of Rams Funding Three LLC and published by Standard and Poor's in February - that Rams and ABN must commence a tender process for the underlying loans. That process must start at least 30 days before February 11.Rams must seek bids from a "tender panel and at least three other financial institutions rated at least A1+". ABN may or may not bid, but may elect to pay 101 per cent of the highest tender price and thus become the highest bidder.