WFCM 2026-C66 will issue seventeen classes of certificates. Out of that, 12 are entitled to principal and interest, three receive interest-only, one is entitled to excess interest Kroll Bond Rating Agency analysts said.
Classes A1 through A5, rated 'AAA' from S&P Global Ratings and KBRA, benefit from credit enhancement levels that represent 30.00% of balances on the tranches.
The A-S tranche benefits from enhancement levels of 22.37%. After that, classes B, C, D, E, F and G benefit from levels of 17.12%, 13.00%, 9.98%, 8.00%, 6.50% and 4.75%, respectively.
Classes A through SB will receive principal payments on the certificates until the balance is reduced to its intended level, S&P said. After that, tranches A1, A4, A5 and A-SB certificates will receive principal payments sequentially until the balance for each is fully paid off, S&P said.
The properties in the collateral loan pool are relatively diverse, with office properties accounting for the largest percentage, 19.7%; self-storage representing 18.5% of the balance; 14.5% anchored by retail properties; 9.9% by a lodging property; plus less than 10% each of several other property types, including ground lease, multifamily and industrial properties, according to Kroll Bond Rating Agency and S&P Global Ratings.
KBRA notes that they have a capitalization rate of 9.33%.
The conduit transaction offers a loan coupon of 6.27%, with a remaining loan term of 9.8 years, KBRA said.
Tranches subordinate to the A5 notes are rated AAA to the classes AS and B; AA- to the C tranches; A- to the class D notes; BBB+ to the E-RR notes; BB- to the F-RR notes; and BB to the G-RR tranche. S&P assigns AAA to the X-A tranche and AA+ to the A-S notes.
