Lineage Logistics has priced $655 million of securities backed by a single, two-year, floating rate commercial mortgage loan that is secured by 42 cold storage warehouses owned by 17 special-purpose property companies.
Fitch Ratings and Standard & Poor's assigned ratings to the deal, CSMC Trust 2014-ICE. The $405 million tranche of AAA’-rated class A notes priced at 80 basis points over one-month Libor, according to a person familiar with the deal.
The $95 million of AA-’ rated, class B notes priced at 120 basis points over one-month Libor. The $71 million tranche of class C notes, rated A-’ priced at 155 basis points over one-month Libor; and $84 million of class D notes, rated BBB’ priced at 215 basis points over one-month Libor. The notes are structured with an initial maturity of 1.83-years.
Credit Suisse, Goldman Sachs and Drexel Hamilton are the lead underwriters on the deal.
Lineage is the second largest cold storage warehousing and logistics company in North America, according to S&P. It operates 102 cold storage facilities across 21 states with 544 million of total square footage.
Twenty-seven of the warehouses securing the loan backing CSMC 2014-ICE are included in a 30-property portfolio that Lineage Logistics acquired with its purchase of Millard Refrigerated Services in March. In addition to Millard, Lineage also acquired two other firms, Loop Cold Storage and Oneida Cold Storage.