Credit Suisse teamed up with JP Morgan and Barclays to sell $1.4 billion of securities backed by 69 commercial mortgage loans that are secured by 94 properties, according to a pricing document.
The deal is called JPMBB 2014-C26; its benchmark super senior, 10-year AAA' notes sold at a spread of 95 basis points over swaps, eight basis points wide of price guidance. The notes also priced wider than the last two deals to come to market this month.
By comparison, Wells Fargo Securities priced the super senior, 10-year tranche of its $1.1 billion conduit, WFCM 2014-LC18, at swaps plus 85 basis points and Deutsche Bank and Cantor Fitzgerald sold the super senior 10-year notes from their COMM 2014 - CCRE21 conduit at swaps plus 90 basis points.
JPMBB 2014-C26 is structured with 18 classes of notes backed by properties located in 27 different states; Florida properties and New York properties represent 21.5% of the pool. Moody’s Investor Service, DBRS and Kroll Bond Rating Agency assigned ratings to the deal.
The pool has exposure to all the major property types but office, multifamily housing, lodging and retail sectors each account for over 10% of the pool.
The five largest loans in the pool include 500 Fifth Avenue (6.9%),1515 Market (4.4%), Wells Fargo Center Tampa (4.1%), Heron Lakes (3.6%), and Shaner Hotels Limited Service Portfolio (3.4%). Most of the loans pay a period of only interest — 46 pay only interest for a partial term and six are full-term interest only.