Price talk has emerged on Deutsche Bank’s $927.5 million commercial mortgage securitization, COMM 2014-LC15, according to a regulatory filing.
The conduit transaction is collateralized by 48 commercial mortgage loans secured by 197 properties, according to a presale report published by Kroll Bond Ratings.
The deal will issue 19 classes of certificates will be issued, eight of which earned preliminary triple-A ratings from Kroll, Moody’s Investors Service and DBRS.
The $50 million class A-1 with a weighted average life (WAL) of 2.74 years is being talked at 50 basis points over its benchmark (not named in the regulatory filing).
The $126.1 million class A-2 with a WAL of 4.9 years is being talked at 60 basis points over its benchmark.
The $$69.5 million class ASB with a WAS of 7.25 years is being talked at 78-80 basis points over its benchmark.
The $243 million class A-4 with a WAL of 9.87 years is being talked at 90-92 basis points over its benchmark.
Deutsche Bank is the sole bookrunner and lead manager of the deal: Natixis, KeyBanc and RBS are co-managers.
Among ratings considerations cited by Kroll, the overall pool has a weighted average in-trust Kroll-adjusted loan-to-value ratio of 103.8%, which is higher than any of the last 16 CMBS conduits rated by KBRA over the past six months. Also, eight loans (43.4%) either have existing subordinate indebtedness (six loans, 26.4%) or allow future subordinate debt to be incurred (two loans, 16.8%). This is above the average amount of existing and permitted future indebtedness (27.9%) for the conduits rated by KBRA over the past six months.
The underlying collateral properties are geographically diverse as they are located in 23 states. However, there is a sizeable New York concentration (24.0%), and the top five geographic exposures represent 58.9% of the pool, which is higher than the average of 55.2% for the CMBS conduit transactions rated by KBRA over the past six months.