Bank of America Merrill Lynch priced 286 million ($331 million) of securities backed by three private equity-sponsored commercial mortgage loans that are secured on 14 office and retail centers located in Italy.
The 206 million senior tranche priced at 150 basis points over three month Libor, ten basis points wider than initial price guidance, according to pricing details reported by Standard & Poor’s.
DBRS and Fitch Ratings assigned single-A plus ratings to the notes.
The three loans Calvino Loan, Globe Loan and Fashion District Loan have an aggregate balance of 301.5 million, according to a DBRS presale report.
The Globe loan has a five-year term and refinanced existing debt tied to three shopping centers owned by Orion Capital Managers, all located in Northern Italy and all anchored by the superstore Unicomm S.R.L. The loan has a loan to value ratio (LTV) of 70.1%.
The Calvino loan, also structured with a five year term, financed Cerebus Capital Management’s acquisition of a portfolio of five office, and four telecom, properties located in Northern Italy and Rome. Of the nine properties, three are multi-tenant office buildings, two are single-tenant office headquarters and four serve as telephone exchange facilities. The loan has an LTV of 108.5%.
The Fashion District, another five-year loan, financed Blackstone Group’s acquisition of two fashion outlet villages, Mantova Fashion District and Molfetta Fashion District, which are respectively located in Northern and Southern Italy. The acquisition of these assets represents the tenth and eleventh investment in retail centers in Italy by Blackstone. The loan has an LTV of 88.4%.