FC CBO III

FC CBO III is a $400 million collateralized bond obligation that originally closed in November 1999.  We were selected as the replacement manager of FC CBO III in February 2004, when the capital structure had delevered to $299 million and performing collateral totaled $228 million.  The FC CBO III portfolio is invested in high yield bonds.  Trading flexibility is limited to credit risk, defaulted and equity securities.

Closing Date   November 17, 1999
Manager Replacement Date   February 18, 2004
Distribution Dates   June 20 and December 20
End of Non-Call Period   December 19, 2002
End of Reinvestment Period   December 17, 2004
Maturity Date   December 20, 2011
Type
Cash Flow CBO

Underwriter
Goldman Sachs

Rating Agencies
Moody's, S&P

Trustee
Bank of New York

Portfolio Manager
Joe Lemanowicz

CDO Analyst
Renée Gallizzo
+1 973 802 4204





  Tranche   Initial Ratings   Ratings on Replacement Date   Current Ratings   Original Principal Amount ($)   Balance on Replacement Date ($)   Current Balance ($)   Interest Rate  
  Class A Notes   Aaa/AAA  A2/AA-  WD   289,500,000 181,953,177 0   6M LIBOR + 0.58%  
  Class B Notes   A3/A-  B3/B  Ba3/CCC-  37,750,000 38,855,834 12,419,897   6M LIBOR + 1.625%  
  Class C Notes   Baa2  C  C  14,750,000 15,665,432 22,715,523   6M LIBOR + 2.50%  
  Class D Fixed Rate Notes   Ba2  C  C  8,250,000 10,763,623 25,547,483   13.75%  
  Class D Floating Rate Notes   Ba2  C  C  10,000,000 11,811,153 22,422,885   6M LIBOR + 6.75%  
  Class E Subordinated Notes   NR   NR   NR   39,750,000 39,750,000 39,750,000   Excess Interest  
Total         400,000,000   298,799,217   122,855,788    
  NR = not rated, N/A = not applicable






Prudential Investment Management is the primary asset management business of Prudential Financial, Inc. Prudential Fixed Income is Prudential Investment Management's largest public fixed income asset management unit and operates through Prudential Investment Management, Inc. (PIM), a registered investment advisor. Prudential Financial and the Rock logo are registered service marks of The Prudential Insurance Company of America and its affiliates.