Goldman Sachs and Citigroup plan to reignite their CMBS offering, according to a Dow Jones report.
The deal was put on hold back in July after there was negative market sentiment from the Standard & Poor's decision to suspend ratings on CMBS 2.0 deals.
The rating agency had issued a statement this summer that said it would reconsider the criteria for assessing risks associated with these types of bond offerings. The agency wanted to reassess the banks’ joint offering with multiple borrowers.
According to the Dow Jones report, the banks have now hired Moody’s Investors Service to rate the securitization. Goldman and Citi also plan to add more loans to the transaction, which is valued $1.5 billion in July.
Meanwhile, Morgan Stanley and Bank of America Merrill Lynch are also marketing a $1.5 billion CMBS deal. The deal is slated to price next week, according to the Dow Jones report.
The CMBS is backed by 63 loans on 76 properties, mostly office and retail space, according to the term sheet. The average loan-to-value ratio is 61.6%.
