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 JP Morgan, Barclays' print in early November, according to an Interactive Data report.
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.