Morgan Stanley and Bank of America Merrill Lynch priced $1.3 billion of commercial mortgage backed securities issued from their MSBAM 2014-C19 conduit.
The notes priced at or tight to guidance with the exception of the 5-year, super-senior class A-2 notes, which priced 8 basis points wide of initial talk.
The 3-year, class A1 notes priced at swaps plus 38 basis points; the 5-year A2 notes priced at swaps plus 70 basis points; the 7-year, class A-SB notes priced at swaps plus 77 basis points; and the 10-year class A4 notes priced at swaps plus 85 basis points.
The deal is backed by 77 fixed rate commercial mortgage loans that are secured by 114 properties, according to Kroll Bond Ratings
The pool has a weighted average loan to value (LTV) ratio of 96.8%, lower that the last 17 conduits rated by Kroll over the previous six months. However, according to the presale report, equity in the pool is boosted mainly by two loans which have relatively low LTVs of 48.1% and 48.3%. Without the loans, the overall LTV for the pool would rise to 104.5%.
The properties securing the loans are located in 29 states, the Commonwealth of The Bahamas, the Commonwealth of Puerto Rico, and Ontario, Canada. There is exposure to all of the major property types, but retail represents the largest, at 25% of the pool, followed by office at 24%, multifamily at 17.1%, and lodging at 15.6%. The loans have principal balances ranging from $2.3 million to $133.0 million for the largest loan in the pool, Koll Airport Business Center, a 1.2 million square foot, Class-B flex office complex located in Irvine, California.