Posting of Collateral

    RNS Number : 3418K
  Canary Wharf Finance II PLC
  17 December 2008
   

    CANARY WHARF FINANCE II PLC
    25 BANK STREET AND 33 CANADA SQUARE 
    - POSTING OF COLLATERAL

    The properties leased by Lehman Brothers Limited (in administration) ("Lehman") at 25 Bank Street and by Citigroup Centre 1 Limited
("Citigroup") at 33 Canada Square (together the "Properties") are included within the Canary Wharf Finance II plc ("CWF II") securitisation
through which approximately �2.55 billion of secured bonds have been issued. The Property at 25 Bank Street is the subject of the HQ2
Facility Agreement provided by AIG Financial Products Corp (with a guarantee from American International Group, Inc. ("AIG")).  The amount
available under this facility is intended to cover shortfalls under the lease for a period of up to four consecutive years from the date of
the first drawdown.  The Property at 33 Canada Square is the subject of the DS6 Facility Agreement provided by Gibraltar Holdings Limited
with the benefit of a DS6 GIC Agreement and DS6 Swap Agreement provided by Banque AIG (with a guarantee from AIG).  The amount available
under the DS6 facility can be used to fund any shortfalls arising on account of a rental payment default until the expiry date under the lease.  Each facility is more particularly detailed in the
prospectus dated 19 April 2007 issued by CWF II. 

    Following the fall in the credit rating of AIG, pursuant to rating agency driven contractual obligations under the HQ2 Facility
Agreement and (as applicable) the DS6 GIC Agreement and DS6 Swap Agreement (together "the Agreements"), each of AIG Financial Products Corp
and Banque AIG has posted cash collateral in their bank accounts held currently with Bank of New York Mellon, London branch and have granted
security over the deposits in such bank accounts as collateral for their obligations under the Agreements (as applicable). Subject to
mark-to-market adjustments, �223.99 million has currently been posted in respect of the HQ2 Facility Agreement and �276.34 million in
aggregate in respect of the DS6 GIC Agreement and DS6 Swap Agreement.  

    Notes to Editors:
    Lehman currently leases approximately 1.023 million sq ft in 25 Bank Street on a tenancy which is due to expire in July 2033.  Lehman
has recently reached agreement to sub-lease circa. 350,000 sq ft in 25 Bank Street to Nomura International plc for approximately two years.
Of the remaining space, approximately 90,000 sq ft is sub-let until 2013 with a further 48,000 sq ft sub-let for varying periods.  

    Citigroup currently leases approximately 562,700 sq ft in 33 Canada Square on a lease which is due to expire in November 2026. 

    Enquires:

    Date: 17 December 2008

John Garwood
Canary Wharf Finance II plc
Tel: +44 (0) 20 7477 1000

    Nick Claydon
    Brunswick Group LLP
    Tel: +44 (0) 20 7404 5959

This information is provided by RNS
The company news service from the London Stock Exchange
 
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