Morgan Stanley plans to issue $800 million in securities backed by a large commercial mortgage loan that is secured by Century Plaza Towers, a tier-one office property in Los Angeles, according to presale reports published by Standard & Poor’s and Morningstar.
The deal, Morgan Stanley Capital I Trust 2014-CPT, will offer $415 million of super senior notes that have been assigned preliminary ratings of AAA’/ AAA’. S&P has assigned the $65 million, class A-M, a AA ’ rating. Morningstar has assigned AAA’ ratings to the notes. The notes mature in July 2021.
The capital structure also features $30 million of AA-’/AA-’ rated class B notes; $75 million of A-’/ A-’ rated class C notes; $50 million of BBB’/ BBB’ rated class D notes, $40 million of BBB-’/ BBB-’ rated class E notes; $80 million of BB’/ BB’ rated class F notes; and $45 million of BB-’/ BB-’ rated class G notes.
The mortgage loan is interest-only for the entirety of its seven-year term. S&P views this as a risk factor because of the higher balance to be refinanced at maturity, compared with an amortizing loan.
Prior to the 2014-CPT transaction, there have been more than 30 isecuritizations under the Morgan Stanley Capital I Trust since 2003.
The last deal S&P rated in the Morgan Stanley Capital I Trust was the Series 2013-WLSR transaction in February 2013. The $193 million commercial mortgage loan was secured by the fee interest in Wilshire Courtyard, a 1.0 million square-foot office campus in West Los Angeles. S&P rated the $119.54 million class A notes AAA.’