Deutsche Bank and Cantor priced their $1.186B conduit CMBS deal, COMM 2013-LC6. Goldman Sachs and Citigroup also priced their $656.35M conduit CMBS offering, GSMS 2013-GC10.
Both deals priced mostly on spread except for the senior-mezzanine piece on COMM 2013-LC6, which priced 10bps wider than guidance.
The ten-year, triple-A’s on both deals priced at or within levels seen on Morgan Stanley and Bank of America’s $1.23 billion series 2013-C7 two weeks ago. COMM 2013-LC6 priced the 10-year, triple-A, A4 notes at 72 basis points over swap rates. GSMS 2013-GC10 priced its 10-year, triple-A, A-5 notes at 72 basis points.
COMM 2013-LC6 priced the 10-year, ‘Aaa’/ ‘AAA’, AM notes at 105 basis points; the 10-year, ‘Aa3’/ ‘AA-’, B notes priced at 150 basis points; and the 10-year, ‘A3’/ ‘A’, C notes priced at 200 basis points.
GSMS 2013-GC10 priced its 10-year, ‘AAA’, A-S notes at 105 basis points. The mezzanine note on the deal priced at 150 basis points.
Series 2013-C7 priced its 10-year A-S notes at 100 basis points; the 10-year class B notes priced at 155 basis points; the ten-year, class C notes priced at 200 basis points.
“I think the slight pullback in spreads is not that surprising given the heavy supply this week,” said one market source. “I also think investors (particularly down-in-credit) are turning a bit more cautious now just based on the fact that spreads tightened so far so fast.”