DEC 16, 2013 4:22pm ET

Single-Borrower CMBS Deals Priced

Print
Reprints
Email

Different pricing levels in single-borrower commercial mortgage-backed securities deals last week are evidence that “investors have increasingly begun to differentiate” between them, analysts at Bank of America Merrill Lynch say.

Starwood Capital Group last week priced a CMBS backed by a $760 million loan that Barclays, The Royal Bank of Scotland and JPMorgan Chase Bank jointly originated.

SCGT 2013-SRP1’s three-year, Class A notes priced at 140 basis over swaps and the three-year, triple-A, AJ notes priced at 195 basis points. The double-A, 2.9-year notes priced at 250 basis points; the 2.9-year, triple-B notes priced at 466 basis points; and the double-B, 2.9 year notes priced at 475 basis points.

Hilton Worldwide priced its close to $2.7 billion MBS deal led by JPMorgan and Deutsche Bank on Nov. 22.

Hilton USA Trust 2013-HLT triple-A rated five-year, Class A notes priced at 125 basis points. The double-A minus, five-year, Class B notes priced at 185 basis points; the single-A minus, five-year, Class C notes priced at 220 basis; the triple-B minus, five-year, Class D notes priced at 290 basis points; and the double-B rated, five-year, Class E notes priced at 390 basis points.

The 1.9-year floating rate, triple-A notes priced at 150 basis points; the 1.9-year triple-B minus notes priced at 275 basis points; and the 1.9-year, double B notes priced at 375 basis points.

JPMorgan, Deutsche Bank, Morgan Stanley and Wells Fargo last week priced the longer-dated, 6.95-year, triple-A notes from its deal Aventura Mall Trust 2013-AVM, at 105 basis points (5 basis points tighter than initial guidance and spreads).

Further down the curve, the notes are also structured with longer maturities and are priced within Starwood’s deal. The double-A rated, Class B with a weighted average life of 6.95-years, priced at 145 basis points over swaps and  the 6.95-years single-A rated, Class C notes priced at 170 basis points.

Spreads on the deal “were tighter across the capital structure than they were for the other single borrower transactions that recently priced,” said B of A Merrill Lynch.

The 1.9-year floating rate, triple-A notes priced at 150 basis point; the 1.9-year triple-B minus notes priced at 275 basis points; and the 1.9-year, double B notes priced at 375 basis points.

Comments (0)

Be the first to comment on this post using the section below.

Add Your Comments:
You must be registered to post a comment.
Not Registered?
You must be registered to post a comment. Click here to register.
Already registered? Log in here
Please note you must now log in with your email address and password.
Twitter
Facebook
LinkedIn
Already a subscriber? Log in here
Please note you must now log in with your email address and password.