The Royal Bank of Scotland and Wells Fargo plan to issue $1.1 billion of commercial mortgage backed securities from the WFRBS Commercial Mortgage Trust, according to presale reports from Fitch Ratings and Kroll Bond Rating Agency.
The 2013-C15 transaction is backed by 83 commercial mortgage loans secured by 136 properties. The loans come from six sellers: RBS (42.9%), Wells Fargo (31.2%), NC, FSB (9.4%), Liberty Island Group I (6.6%), CIII Commerical Mortgage (6.1%), and Basis Real Estate Capital II (3.8%).
The deal will offer investors 14 classes of notes. Both Fitch and KBRA rated the six $855.2 million total super-senior classes with 30% credit enhancement (one is an interest only class) and a $80.3 million junior A-S class with 22.750% credit enhancement 'AAA'. They also agreed on all the subordinate classes, rating the B, C, PEX, D, E, F, and G notes totaling $248.8 million 'AA-', 'A-', 'A-', 'BBB-', 'BB', 'B', and not rated, respectively.
The class A-S, class B and class C certificates may be exchanged for a related amount of class PEX certificates, and vice versa.
Fitch said the loan-to-value ratio of 96.6% is better than the average LTV of 99.8% for Fitch-rated first-half 2013 conduit transactions. Additionally, according to KBRA, the overall pool has a weighted average in-trust KLTV of 88.6%, which is lower than any of the 18 other CMBS conduits rated by the agency in 2013, which averaged 95.3%.
However, the pool is more concentrated by loan size, property type, and geographical location than average transactions in 2012 and 2013. The top 10 loans represent 56.2% of the pool, higher than the first-half 2013 and 2012 average concentrations of 54.3% and 54.2%, respectively. 37.6% of the mortgages are on retail properties, and hotel properties make up 18%.
While the pool represents 26 states and California, at 21%, is the only state that exceeds 15% of the pool, the top five geographic exposures represent 64.3%. This is higher than the average of 58.5% for the CMBS deals rated by KBRA in 2013.
Wells Fargo Bank and NCB, FSB will service the notes. CWCapital Asset Management and
NCB, FSB will act as special servicer.
