Price talk for Extended Stay’s $2.5 billion single-borrower CMBS deal show spreads may have widened some from the levels seen earlier this month.

The loan is structured with three components, including the $350 million, two-year (with three, one-year extension options) floating-rate component A, the $350 million five-year fixed-rate component B, and the $1.82 billion seven-year fixed-rate component C. The total debt package includes mezzanine financing in the amount of $1.08 billion that is not included in the trust.

According to one market source who is familiar with the deal, the A-1 notes are being marketed at 90 basis points over the one month libor; the A notes are being marketed at 80 basis points; the B notes are being marketed at   between 125 basis points to 130 basis points spread; the C notes are being marketed at 175 basis points; and the D notes are being marketed at 265 basis points.

Fitch Ratings assigned preliminary ratings of ‘AAA’ to the A notes; ‘AA-‘ to the B notes; ‘A-‘ to the C notes and ‘BBB-‘ to the D notes.

Wells Fargo, JP Morgan and Bank of America priced the $600 million single-asset commercial mortgage-backed securitization, Queens Center Mortgage Trust 2013-QC earlier this month. The deal, which is backed by backed by the Queens Center in New York City, was rated by Fitch. The class A notes, rated ‘AAA’ priced at +85 basis points.  The class B notes rated ‘AA-’ priced at 95 basis points;  the  class C notes rated ‘A-’ priced at 125 basis points; and the class D notes rated  ‘BBB-’ priced at 180 basis points.

The total debt package for the Extended Stay deal includes mezzanine financing in the amount of $1.08 billion that is not included in the trust. According to the market source those notes are being marketed at spreads north of 578 basis points. “Spreads soften a bit lately, so I wouldn't be surprised to see the mezzanine piece trade a little wider than expected, especially given the heavy supply calendar,” said the industry source.

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