CMBS primary pipeline looks set to continue a busy pace until the end of the year with three deals marketing this week.
UBS, Barclays Capital and Natixis began marketing a $1.456 billion commercial mortgage backed securitization deal call series 2012-C4, according to Standard & Poor’s and Fitch Ratings. The ratings agencies have assigned preliminary ratings to the deal. The class A-1, A-2, A-3, A-4, A-5, A-B, A-S and X-A will be rated ‘AAA’. The class X-B and C will be rated ‘A’; the class B notes will be rated ‘AA’; the class D notes will be rate ‘BBB-“; the class E notes will be rate ‘BB+’ and the class F notes wil be rated ‘BB-’.
The super senior ‘AAA‘ rated classes have been structured with 30% credit enhancement and the subordinate ‘AAA‘ rated, class A-S is structured with 20. % credit enhancement.
The deal is backed by ninety-one commercial mortgage loans with an aggregate principal balance of $1.456 billion, secured by the fee and leasehold interests in 131 properties across 28 states. The largest 10 loans account for only 47.3% of the transaction, among the most diverse deals of 2012, according to the presales. According to Fitch, Marcourt Net Lease Hotel Portfolio (9.6% of the pooled trust balance) and Boeing Office Campus (4.3%) are top 10 loans with single-tenant exposure,
However the pool is “significantly” exposed to lodging assets. According to S&P, 11 loans which represent $337.1 million of the pool, are secured by lodging assets. The analysts noted that these loans are consider among the riskiest because their pricing structure changes daily, they have a significant operating component and they have a higher expense ratio relative to other property types. These risks in the lodging sector are somewhat mitigated by the low U.S. supply growth rate in recent years, said S&P.
Also in the CMBS pipe line this week is a $793.5 million deal being marketed by joint bookrunners Deutsche Bank and Cantor Fitzgerald, according to a Bloomberg report. Co-managers on the deal are KeyBanc Capital, CastleOak Securities and Nomura.
The deal has been assigned preliminary ratings by Fitch and Moody’s Investor Service. The class A-1, A-2, A-SB, A-3 and A-4 notes, which will be publicly issued, have been rated ‘AAA’. A single class of A-M notes, that is slated for private issuance has also been rated ‘AAA’. Classes A-1 through A-4 have 30% credit enhancement.
The structure will also issue class B notes, class C notes, class D notes and class E notes which have been assigned a preliminary rating of ‘AA’, ‘A’/ ‘Aa3’, ‘A’, ‘BBB+’ and ‘BBB-’ respectively.
Goldman Sachs is in the market with its GSMS 2012-TMSQ deal, a CMBS large loan transaction collateralized by a $208 million first lien mortgage loan, according to Kroll Bond Rating Agency. The loan is secured by the borrowers’ fee simple interest in a 93,263 sf, 23 story retail and signage building at 1471 Broadway in the Times Square section of New York.
Kroll assigned preliminary ratings to the deal. The class A, X-A, and X-B notes will be rate 'AAA'. The Class B, C and D notes will be rate 'AA+', 'A', and 'BBB+' respectively.
