| 4E - Bankruptcy of a Top 3 Tenant who occupies > 30% NRA. Loan is secured by a 37,332 sf office property in Bentonville, AR, built in 2005. The 8/11/2008 inspection rated the Property in Good condition. YE 12/31/2008 NCF DSCR is 2.03x with 100% Occupancy. The Loan is on the Watchlist due to tenant exposure resulting from bankruptcy filing. Spectrum Brands, Inc., who occupies 14,603 sf (39% NRA) and has a 11/30/2010 lease expiration, filed for Chapter 11 Bankruptcy (\''BK'') protection on 2/3/2009. The Atlanta, GA-based Spectrum Brands manufactures Rayovac batteries and Remington shavers, owns the Repel and Cutter insect repellent brands, and also owns pet supply and home/garden entities. Spectrum cited a heavy debt load of $2.6 billion at the time of their BK filing. According to initial press coverage on 2/3/2009, Spectrum filed a pre-negotiated BK plan intended to reduce Spectrum''s debt and free up cash flow; this BK plan was reportedly pre-approved by a 70% majority of its shareholders. According to the Primary Servicer, the Borrower has indicated that ''Spectrum will honor the lease under a different tenant name'' and the ''Borrower has no concerns about making the DS payments as the space will stay filled for the present lease.'' Bank of America will continue to monitor the Loan.
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