The two commercial backed mortgage securities conduits that priced this week were at spreads wider than a comparable deal a month earlier, according to a report released today by Trepp.
UBS and Barclays were the latest issuers to come to market; the duo priced its $1.2 billion multi-borrower CMBS conduit, UBS-BB 2013-C6, at levels close to where Cantor and Deutsche Bank priced another conduit deal COMM 2013-CCRE7, this week.
The 2.67-year class A-1 notes for the UBS-BB 2013-C6 deal priced at 35 basis points over swaps; the 4.93-year class A-2 notes priced at 55 basis points; the 9.73-year class A-3 notes priced at 96 basis points; the 7.27-yeat class A-SB notes priced at 90 basis points; and the 9.98-year, A-S notes priced at 120 basis points, according to a pricing document. The tranches were rated ‘AAA’/ ‘AAA’/Aaa’, respectively by Fitch Ratings, Kroll Bond Ratings and Moody’s Investors Service.
The mortgage pool for UBS-Barclays Commercial Mortgage Trust 2013-C6 consists of 73 fixed-rate commercial, multifamily and manufactured housing community mortgage loans that are secured by 91 properties located in 28 U.S. states and the U.S. territory of Guam. The deal is the first U.S. CMBS to include a non-U.S. domiciled asset.
Redwood Commercial Mortgage Corporation and Natixis join UBS and Barclays as lead managers on the deal. JP Morgan and Drexel Hamilton are co-sponsors of the deal.
By comparison, Cantor and Deutsche Bank priced their 2.33 year, triple-A notes at 34 basis points over swaps; the 4.63-year, triple-A notes priced at 53 basis points; the 7.08-year, triple-A notes priced at 87 basis points; and the 9.93-year, triple-A notes priced at 93 basis points.
“This week, the various new issue conduit 10-year AAA bonds have been talked or priced 8 to 13 basis points wider than the March levels,” said Trepp analysts in the report.
The previous conduit that priced was in early March for the Wells Fargo/RBS conduit, WFRBS Commercial Mortgage Trust 2013-C12. That 2.67-year, ‘AAA’ notes on that deal yield 25 basis points over their benchmark; the 4.87 year, ‘AAA’ notes priced at 50 basis points; and the 9.92 year ‘AAA’ notes priced at 85 basis points.