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.
