Both Falcon Trust and Schooner Trust priced their Canadian CMBS transactions last week, marking an auspicious start to the New Year.
The C$172.65 million Falcon Trust deal is divided into four classes of securities: C$125.6 million of triple-A rated class A1 notes with an average life of 6.79 years, priced to yield 81 basis points over Canadian benchmark rate GOC; double-A rated Class B paper with an average life of 7.96 years, priced with a 110 basis point spread to GOC; single A-rated C class notes with an average life of 9.99 years, cleared at 160 over GOC; and triple-B rated subordinates with an average life of 9.99 years, priced to yield 275 over GOC.
The C$172.65 million (notional) IO Class X, rated triple-A, is a private placement; no data was made available.
Meanwhile, Schooner Trust priced its C$437.53 million transaction. The breakdown is as follows: C$207.8 million of triple-A rated class A1 with an average life of five years, priced at 70.1 basis points over GOC; C$199.8 million of triple-A rated class A2 with an average life of 9.5 years, priced 80.1 basis points over GOC; double A-rated class B with an average life of 9.8 years, cleared 100.01 basis points over GOC; single A-rated class C with an average life of 9.8 years, priced at 135.1 over GOC; and subordinate triple-B rated with an average life of 9.9 years, priced 250.1 over GOC.
The C$202.917102 million (nominal) IO Class X average life 7.6 years was priced to yield 390.1 basis points over GOC.
Several other tranches were sold privately.
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