Wells Fargo and Royal Bank of Scotland priced a $900 million CMBS conduit, WFRBS Commercial Mortgage Trust 2014-C25.
The notes are backed by 59 loans secured by 73 commercial and multifamily properties.
The deal’s 10-year, super senior tranche yields swaps plus 85 basis points, 1 basis point tighter than a similar tranche of
Moody’s Investor Service and DBRS assigned preliminary ratings to the latest deal.
Several of the loans in the pool have a high level of refinance risk, DBRS noted in its presale report. Twenty-two loans, representing 48.0% of the pool, have DBRS Refi debt service coverage ratio of less than 1.00x; 10 of these loans have Refi DSCRs of less than 0.90x.
Four loans representing 20.5% of the pool (including two in the top 10), pay only interest for their full term. An additional 27 loans, representing 52.0% of the pool, pay only interest for periods ranging from 12 to 66 months.
The deal priced ahead of a heavy calendar of multi-borrower CMBS, including a $1.3 billion Deutsche Bank-UBS deal and a $1.25 billion Goldman Sachs-Citigroup transaction.
The boost in issuance over the coming two months is expected to bring conduit gross volume for the year to about $58 billion, according to Bank of America Merrill Lynch.
Beyond the conduit volumes, there is also a heavy pipeline of deals backed by a single asset or several large loans. BofAML projects that issuance in the next two months is likely to bring gross volume in this sector to about $33 billion for the year as a whole.
Pricing this week was LCCM 2014-PKMD, a $450 million securitization backed by five-year commercial mortgage loan issued by Ladder Capital.
The class A notes priced at swaps plus 60 basis points, according to an Interactive Data report.
The loan is secured by Parkmerced, a San Francisco multifamily complex. Morningstar and Standard & Poor’s rated the deal.
