Price guidance on the $968 million Goldman Sachs and Citigroup conduit was issued on Tuesday.

The deal, GSMS 2014-GC18, is set to price this week.

Moody’s Investors Service, Fitch Ratings and Kroll Bond Ratings Agency assigned preliminary ratings on the deal. The 10-year, super senior notes are being talked around the area of 87 basis points over swaps, similar to where the super seniors of Deutsche Bank’s COMM 2014-CCRE14 priced earlier this month.

Further down the credit curve, the double-A rated, class B notes structured with a weighted average life of 9.94-years are being talked at 165 basis points over swaps; the single-A minus, class C notes are being talked in the 210 basis points area.

The deal is backed by 74 commercial mortgage loans that are secured by 141 properties. Fitch noted in its presale report that the pool’s debt service coverage ratio and LTV of 1.15x and 106.2%, respectively, are worse than the averages for the sector in 2013 (1.29x and 101.6%) and 2012 (1.24x and 97.2%).

Two of the five largest loans, The Crossroads (9% of the pool) and Wyoming Valley Mall (7%), are collateralized by regional malls located in secondary markets. Retail properties represent the largest property type concentration at 40.5% of the pool, including five of the top 10 loans. This is higher than the 2013 average retail concentration of 33.2%.

However the pool’s hotel concentration of 8.1% is lower than the 2013 average hotel concentration of 14.7%. Two of the 15 largest loans in the pool are collateralized by hotel properties. Hotels have a higher probability of default in Fitch’s multiborrower model.

 

  

 

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