BAML prices reduced Taurus CMBS at blended 280bps

Bank of America Merrill Lynch (BAML) has priced its reduced €145.8m, four-and-a-half year Taurus 2015-3 EU DAC CMBS at a blended coupon of 280bps after discounting the deal. The transaction is a securitisation of two loans made to MStar Europe, a joint venture between M7 Real Estate and Starwood Capital, secured on 62 light industrial assets in the Netherlands, France and Germany. The transaction is a securitisation of two loans made to MStar Europe, a joint venture between M7 Real Estate and Starwood Capital, secured on 60 light industrial assets located across the Netherlands, France and Germany.

Bank of America Merrill Lynch (BAML) has priced its reduced €145.8m, four-and-a-half year Taurus 2015-3 EU DAC CMBS at a blended coupon of 280bps after discounting the deal.

The transaction is a securitisation of two loans made to MStar Europe, a joint venture between M7 Real Estate and Starwood Capital, secured on 62 light industrial assets in the Netherlands, France and Germany.

It was initially marketed as a €177m deal but all the tranches have been reduced in size by an overall €30m, which BAML will reportedly retain. All but the Class A notes have been discounted.

It is the third CMBS to price at discount in recent months. Goldman Sachs restructured and discounted its €182m REITALY CMBS earlier this month and was also forced to discount its £646m Logistics UK 2015 deal in August in order to sell it.

The six tranches of Taurus 2015-3 EU DAC, with DBRS/Moody’s ratings, are priced as follows:

Class    Size (€m)     Rating        LTV(%)     Price           Margin

A             60.9          AAA/Aaa        28.3         100       165 + 3m Euribor

B             14.4          AAA/Aa3        35            99.79     235 + 3m Euribor

C             15.9           AA/A3           42.4         99.37     315 + 3m Euribor

D             19.0           A/Baa3          51.2         97.95    400 + 3m Euribor

E             17.7          BBB/Ba2        59.4         94.05    550 + 3m Euribor

F             17.9           BB/B3            67.7         94.18    650 + 3m Euribor

The deal matures in April 2020 with an eight year tail period.

BAML’s two loans, named TEIF and Bilux after the two MStar portfolios each is secured on, have a combined loan-to-value of 67.7% based on the bank’s original, total facility of around €200m.

The €91m, five-year TEIF  loan, for refinancing the Tamar European Industrial Fund, has an LTV of 65% and is secured on 31 assets in the Netherlands, Germany and France. BAML provided the facility in December 2014 and has sold down about €9m so is securitising the remainder. The portfolio is valued at around €126m.

Jarmuiden in Amsterdam, one of the assets in the Bilux portfolio.
Jarmuiden 22-58, Amsterdam, one of the assets in the Bilux portfolio.

The €104m Bilux acquisition loan has an LTV of 70% and is secured on 31 assets in the Netherlands and Germany valued at €148m. BAML made the loan January.

Across the two portfolios there are 329 tenants, 125 in TEIF and 204 in Bilux, with occupancy in both portfolios 85%. By value, 39% of the assets are in France, 34% in Germany and 27% in the Netherlands. BAML will retain at least 5% of each underlying loan.

This is BAML’s third European CMBS launch this year. In January, it issued its five-year €286.4m Taurus 2015-1 IT multi-borrower securitisation of three Italian loans to Blackstone, Cerberus and Orion Capital Managers. In April, it priced its €455m Taurus 2015-2 DEU, secured by a single loan on IVG Immobilien’s The Squaire property at Frankfurt Airport.

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