Citigroup has priced $1.09 billion of commercial mortgage bonds, according to a regulatory filing.
The deal, Citigroup Commercial Mortgage Trust Series 2014-GC23, is backed by 83 loans secured by 99 properties throughout the U.S. The pool contains a traditional mix of property types, including retail (32.8%), hotels (17.1%) mixed-use (12.6%), and office properties (11.6%). These properties are geographically diverse, with locations in New York, California, and Texas.
The $49.64 million class A-1 notes priced at a spread of swaps plus 38 basis points, with a weighted average life of 2.83 years. The $85.8 million class A-2 notes priced at swaps plus 48 basis points, with an approximate five-year weighted average life, and the $300 million class A-3 notes, with a 9.83 year weighted average life, priced at swaps plus 69 basis points. The $345.2 million class A-4 notes priced at swaps plus 71 basis points, with a weighted average life of about 10 years. All of the class A are rated Aaa/AAA’ by Moody’s Investors Service and Fitch Ratings, respectively.
The underwriters for the deal are Citigroup and Goldman Sachs.
Among the deal’s strengths, according to Fitch, is the fact that its debt service coverage and loan to value ratio, as calculated by the rating agency, are 1.25x and 99.4%, respectively; that’s, are better than the 2013 and 2014 year-to-date averages of 1.29x and 101.6% and 1.19x and 105.6%, respectively.
However, the pool has a significantly above-average proportion of interest-only loans (24.4% of the pool balance versus the 2013 average of 17.1%) and above-average concentration of partial interest loans (43.7% versus the 2013 average of 34.0%). The pool is scheduled to amortize 11.0% prior to maturity.
Citigroup was founded in 1812 and is headquartered in New York, NY.