Wells Fargo Bank, Ladder Capital Finance and The Royal Bank of Scotland (RBS) filed a free writing prospectus yesterday with the Securities and Exchange Commission to issue a $1.05 billion CMBS under Wells Fargo Commercial Mortgage Trust 2012-LC5.

Wells Fargo and RBS are co-lead managers and co-bookrunners on the transaction. Ladder Capital and Citigroup are co-managers in the transaction, the filing said.

The deal will be rated by both Moody's Investors Service and Fitch Ratings.

The deal's largest mortgage loan is the Los Angeles, CA-based mall called Westside Pavillion worth $155 million. This is followed in size by a loan to Starwood Capital Group backed by hotel properties in various locations worth $110 million.

The deal comprises mostly retail (42.4%), office (22.1%) and hospitality (19.1%) loans, according to the SEC filing.

According to a Standard & Poor's midday update, they expect a full-yeat total CMBS issuance of $4 billion, which increased 20% from last year. Aside from two deals worth $1.3 billion sold this week, S&P said that dealers are marketing an additional $2.3 billion of CMBS that would bring the year-to-date totla to $28.5 billion.

"The year-to-date increase in CMBS issuance is a modest negative credit indicator, in our view, as higher volumes have historic correlations with weak performance," analysts wrote.

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