Deutsche Bank priced €355 million ($482.4 million) of bonds backed by three commercial mortgages secured by Italian properties, according to a person familiar with the deal.

The 4.2-year senior tranche in the deal, dubbed DECO-2014 Gondola, priced at 145 basis points over three month Euribor. Although the spread was below initial guidance in 150 basis point-area, the tranche also priced below par, at 99.85.

The deal is the first multi-loan European CMBS since 2007 that has been placed with investors. To date, CMBS issued post financial crisis have been backed by a single large loan. 

Deutsche Bank is lead manager and sole bookrunner on the deal.  DBRS and Fitch Ratings assigned preliminary ‘AA’/ ‘A+’ ratings to the class A notes.

The capital structure also offered $65 million of, ‘AA’ / ‘A’-rated, 4.7-years class B notes that priced at 175 basis points.  A $30.5 million,  ‘A’/ ‘A-’rated, 4.7-year class C tranche priced at 210 bas points over three-month Euribor.

Further down the credit curve, the ‘BBB’/ ‘BBB-’, 4.7-year class D notes priced at 295 basis points over three-month Euribor and the ‘BB’/ ‘BB’ rated, 4.7-years class E notes priced at 370 basis points over three-month Euribor.

Deutsche Bank will retain on an ongoing basis a material net economic interest of at least 5% of each class of notes.

The loans, which have original five-year terms and a loan-to-value ratio of 60.5%, are secured by 18 mixed-use Italian properties. 

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