The truncated week was slow to show any signs of a post-Easter deluge of deals. However, by mid-week, indications of an improving market flow had already begun.
Several new deals have hit the screen following the long holiday break. The seventh deal from Credit Suisse s Titan CMBS conduit was announced. The transaction, which is backed by German multifamily properties, was expected to offer 850 million ($1.04 billion).
A securitization of healthcare receivables for the Italian region of Abruzzo was also announced. The 327.4 million deal had been rumored for sometime and is backed by healthcare receivables owed to private healthcare companies. Market sources said the deal is being marketed quietly.
Some details on the size and capital structure of the new Lothian deal were released. The new issue is expected to total GBP1 billion ($1.8 billion) and will include a double-B tranche, which has not been seen in any U.K. prime RMBS transaction since Lothian No. 3 priced in June 2004.
On the CLO side, a healthy pipeline of deals continues to build. A fifth deal from Avoca Capital is in the works, with the equity reportedly being marketed. And a 200 million tap of Intermediate Capital Group's market value deal, Eurocredit Opportunities, is also expected to begin marketing shortly.
A new Spanish 1.45 billion RMBS transaction, UCI 15, also began circulating. A total of 1.34 billion of triple-A rated notes were being offered with a 4.8-year average life along with a smaller 8.2-year, single-A and triple-B rated notes. The provisional pool had a 75.3% LTV and seven months seasoning. Marketing also began for BBVA Consumo 1, a 1.5 billion Spanish consumer loan deal for BBVA. A total of 1,447.5 million of 3.3-year triple-A rated notes were being offered, with 28.5 million of 5.2-year, double-A notes and 24.0 million of 5.2-year single-A rated notes.
Dresdner Bank revised guidance for its true sale CLO of SME corporate exposures, RCL Securitisation GmbH. The 1.0 billion 4.0-year triple-A rated tranche was initially talked at 12 basis points over Euribor, but was revised talk between 10 and 11 basis points. The notes are supported by 2.0 billion of unrated subordinated notes and overcollateralization. RCL Securitization is expected to optimize the Dresdner's balance sheet ahead of Basel II capital requirements to be implemented in January 2007.
Price talk was also released for the GBP1.025 billion index-linked Capital Hospitals UK PFI deal. Two index-linked tranches, wrapped by AMBAC and FSA, were being offered sized at GBP512.5 million and talked at the low to mid 50 basis points over Gilts range. The deal will finance the design and construction of the new hospital facilities for Barts and The Royal London NHS Trust.
Suncorp Metway is marketing its latest $2.5 billion Australian RMBS -Apollo Series 2006-1E Trust. Apollo offers A$1.0 billion and 400 million of triple-A rated notes with 2.6- and 2.7-year average lives. A smaller 4.8-year, double-A rated tranche supported by the lender's mortgage insurance is also on offer. The provisional pool had a 66.4% LTV and 19 months seasoning.
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