It consists of EUR 558 million ($726.6 million USD) ofinvestment grade notes, EUR 19 million ($24.7 million USD) ofnon-investment grade notes, and EUR 23 million (nearly $30 millionUSD) of unrated notes. At the time of the issuance, Jan. 31, theweighted-average interest rate of the investment grade securitieswas Euribor (Euro Interbank offered rate) plus 49 basis points.Certain of the non-investment grade notes, not quantified in acompany statement, and the unrated notes were purchased by a RAITsubsidiary.

The aggregate outstanding balance of the assets acquired by theCDO on the closing date was approximately EUR 360 million ($469million USD). Taberna expects to use the remainder of the netproceeds, EUR 240 million (approximately $312.9 million USD) toacquire similar assets by Jan. 31, 2008, which is the ramp-upcompletion date.

This is the ninth CDO transaction managed by RAIT and itssubsidiaries. It is the financial REIT's first European-dominatedCDO, and, in a statement, the company says it believes this thefirst issuance of a European CDO that is backed primarily bysubordinated and senior debt issued by real estate companies inEurope.