STORE Capital Corp. issued its $218.5 million commercial net lease mortgage-backed securitization, pricing the shorter dated, single-A notes at tighter levels than its March transaction.
Both deals are backed by commercial real estate properties including the rental cash flows on these properties.
The class A-1, structured with a weighted average life of 6.59-years, priced at 240 basis points over interpolated swaps, according to a Credit Suisse research report. In March, the issuer priced the A-1 noes at 270 basis points.
By contrast, the 9.14-year, single-A rated, class A-2 notes from the latest issue priced at 280 basis points, 18 basis points wider than the issuer’s previous deal. No pricing info was available on the $14.5 million, triple-B rated, B notes.
Credit Suisse is lead arranger on the deal that is backed by 406 commercial real estate properties across various industry sectors, including related rents due under triple-net leases and hybrid leases with the properties' tenants.
Hybrid leases are composed of a ground lease--or sublease for properties in which the issuer has a ground lease interest--on the land and a mortgage on the building. They comprise roughly 6% of the pool.