Wells Fargo and RBS plan to issue WFRBS Commercial Mortgage Trust 2013-C12, a $1.2 billion conduit backed by 100 commercial mortgage loans secured by 138 properties.
The deal has been issued preliminary ratings by Kroll Bond Ratings. It will offer investors $879.89 million of ‘AAA’ rated class A notes; $75.42 million of ‘AA-‘, class B notes; $50.79 million of ‘A-‘ class C notes; $41.56 million of ‘BBB-‘ class D notes; $27.7 million of ‘BB’ class E notes and $16.93 million of ‘B’ rated, class F notes. The capital structure also includes unrated $36.9 million of class G notes.
The sponsors of the loans backing the transaction include RBS (18 loans, 44.8%), Wells Fargo Bank, National Association (28 loans, 31.9%), Liberty Island Group I LLC (11 loans, 7.6%), C-III Commercial Mortgage LLC (14 loans, 6.6%), Basis Real Estate Capital II, LLC, (six loans, 4.7%) and NCB, FSB (23 loans, 4.5%), according to the KBRA presale report.
The overall pool has a weighted average in-trust LTV of 91.9% but that average is supported by the 23 multifamily cooperative loans included in the portfolio that have a weighted average LTV of 34.6% in the pool. According to KBRA, excluding these loans would mean that the overall in-trust LTV would be 94.6%.
Sixteen loans, accounting for 32.0% of the pool balance, have KLTVs in excess of 100%. Still, the deal’s exposure to loans with LTVs in excess of 100% is below the average of the last eight CMBS conduits KBRA has rated.
“Higher leverage implies lower borrower equity levels, greater default probability, and higher overall loss severity should a default occur,” explained KBRA analysts in the presale report.