The season might be changing, but it won't be enough to lighten the heavy mood that has held the European primary market deal flow at a standstill for much of the year.
Apart from a trickle of auto deals, the transactions have been either retained by the issuing bank for the European Central Bank-sponsored repo program or privately placed.
With so many questions still unanswered, the public market is likely to remain quiet.
Pricing information has been released for Promise-I Mobility 2008-1, a 1.5 billion ($2.37 billion) synthetic balance sheet CLO of loans to German SMEs originated by Industriekreditbank. The class A1 notes were priced at 125 basis points over the three-month Euribor, the class A2 junior triple-A notes priced at 200 basis points, and the class B notes priced at 265 basis points. The class A notes priced at 410 basis points, the class D notes priced at 570 basis points, the class E notes priced at 875 basis points and the 25.7 million unrated class F notes priced at 2,650 basis points.
The structure also included a 1.373 billion super-senior ranking pari passu tranche with the class A1 notes, and a 45 million junior super-senior class ranking alongside the class A2. All classes of notes were retained or preplaced.
The 875 million German auto lease transaction for LeasePlan Deutschland GmbH a deal called Bumper 2, began marketing last week.
The portfolio is expected to comprise 43,880 leasing contracts to 1,606 lessees with a weighted average seasoning of 14.7 months and regional concentration in North Rhine-Westphalia (31.9%), Hesse (24.2%) and Baden-Wurttemburg (18.4%).
RUMBA, a RUB6.8 billion ($280 million) Russian RMBS transaction for KIT Finance Investment Bank, was also out last week. The portfolio is expected to consist of 5,841 first-lien mortgages with a weighted average LTV of 65.34% and a weighted average seasoning of 11.8 months. The transaction benefits from a cash reserve equivalent to 2.25% of the transaction, a co-mingling reserve of 4.25% and an overcollateralization of 6.5%. Morgan Stanley is leading the deal.
Standard & Poor's, which is rating the deal, said that the loans backing the transaction are located in diverse geographical positions across the Russian Federation and have a weighted average LTV ratio of 65.34%, which will mitigate any potential house price volatility and the high cost of foreclosure in Russia. KIT Finance recently opened an office in London.
HVB's 250 million Windfarm deal called Breeze IV, which was announced in February, has been postponed. The bank said that, although preselling of the deal was very good, the market is too volatile at the moment.
A source at the bank said that it has been postponed until summer or autumn. "We expected that conditions would be better by March and that is why we began premarketing of the deal," he said.
Still, preliminary guidance was out on the deal. The 160 million triple-B minus tranche is talked at around the 200 basis point area over the benchmark with a 11-year weighted average life, while the 50 million double-B tranche is talked at the 400 basis point area, with a 12-year weighted average life. The unrated class C is talked at approximately 12%.
Unlike Breeze III, which launched in April 2007, the 240 million (US$352 million) deal does not include a wrapped tranche. This means that the highest rated piece is just triple-B-minus. Pricing was expected to take place in early to mid-March. HVB said it would continue to be in close contact with all investors who have invested in or have shown interest in the Breeze platform.
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