Wells Fargo Securities and RBS priced $937 million of commercial mortgage bonds at levels tighter than the previous conduit to print, according to a deal document.
The latest deal, WFRBS Commercial Mortgage Trust 2014-C24, has a super-senior, 10-year note that yields swaps plus 86 basis points. That was five basis points tighter than a similar tranche of COMM 2014-CCRE20, which priced last week at swaps plus 91 basis points.
At the junior level, the Wells Fargo/RBS conduit priced the AA-’/ AA-’/ Aa3’, 10-year, class B notes at swaps plus 145 basis points and the 10-year, A-’/’A-’/ A3’ notes at swaps plus 190 basis points. Fitch Ratings, Kroll Bond Ratings and Moody's Investors Service rated the latest conduit. The notes priced up to 20 basis points tighter than the comparable notes issued from COMM 2014-CCRE20.
WFRBS Commercial Mortgage Trust 2014-C24 is backed 86 loans that are secured by 109 properties. The five largest loans in the pool make up 34.1% of the pool balance.
The transaction has exposure to all major property types but retail properties account for 40.7% of the pool. The largest loan, which accounts for 9.5% of the pool, is backed by St. John’s Town Center, a 1.4 million sf outdoor regional mall located in Jacksonville, Florida.The five largest loans also include Two Westlake Park (8.4%), Gateway Center Phase II (6.9%), Crossings at Corona (6.4%), and Hilton Biltmore Park (2.9%).
Seventy-six loans representing 86.4% of the pool balance have ten-year terms and 76.8% of the pool is comprised of loans that pay only only interest for some portion of the loan’s life.
Leverage in the pool is lower than the last 17 CMBS conduit transactions rated by KBRA over the past six months. However, the pool’s exposure to high leverage loans with LTVs in excess of 100% is 63.1%, above the average of 60.8% of the last 17 CMBS conduit transactions.