Deutsche Bank, Jefferies, and UBS have set final pricing terms on $1.35 billion in commercial mortgage bonds, according to a regulatory filing.

The conduit deal has been rated by Morningstar and DBRS.

The transaction, called COMM 2015-PC1,offers seven senior tranches of class A notes that are rated triple-A by both Morningstar and DBRS, and pay 50 basis points (bps), 72 bps, 94 bps, 100 bps, 105 bps, 107 bps, and 145 bps over swaps, respectively. The class A notes benefit from 30% credit enhancement (CE). The senior tranches have a weighted average life ranging from 2.65 years to 9.77 years.

There are also three subordinate level tranches: $107.9 million class B notes rated ‘AA-’/’AA(low) that pay swaps plus 198 bps and benefit from 17.375% CE; $73.1 million class C notes rated ‘A-’/’A’(low) that pay 268 bps over swaps and benefit from 12.375% CE; and  $72.5 million class D notes rated ‘BBB-’/’BBB’(low) that benefit from 7.419% credit enhancement and pay swaps plus 440 bps.

The class B, C, and D commercial mortgage bonds all have a weighted average life of 9.91 years. 

Wells Fargo is serving as the master servicer of the deal, while RIALTO is the special servicer and Park Bridge is the operating advisor.

The conduit deal is collateralized by 80 loans that are secured by 147 commercial real estate properties worth approximately $1.46 billion. The loans are underwritten by Natixis Real Estate and Drexel Hamilton. 

The largest loans in the pool, 9000 Sunset, Princeton GSA Portfolio, and Ocean Key Resort and Spa, represent 8.5%, 7.8%, and 5.1% of the portfolio balance, respectively. The risk is vastly distributed, with the 10 largest loans representing 38.7% of the pool and no other loan representing more than 3.3% of the portfolio balance.

The high exposure to naturally volatile office buildings (36.2%) and hotel properties (18%) is considered a key risk of the transaction. The states with the highest concentration of properties are California (29%), Florida (9.1%), and Texas (8.4%).

A key strength of COMM 2015-PC1 is the low to moderate weighted average (WA) loan-to-value ratio (LTV) calculated by Morningstar. Loans in the pool have a beginning WA LTV of 90.9% and ending WA LTV of 79.9%, which are considered to be low leverage levels in comparison to previously rated CMBS transactions.

The deal is expected to settle July 14.

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