Bank of America Merrill Lynch (BAML) has released initial price thoughts (IPTs) for its latest CMBS, the €317.05 million Taurus 2016-1 DEU which is backed by a German retail portfolio owned by Blackstone.
BAML has set indicative pricing for the €141.6 million A class notes at 140-150 basis points over three-month Euribor. The €38.2 million B class IPTs have been set in the mid-200s bps.
The deal promises to be the first European CMBS of 2016, potentially breaking the virtual deadlock which has gripped the market since last September when volatility in the capital markets forced investment banks to shelve securitisation plans.
Indicative pricing across the six tranches is as follows:
• Class A (€141.6 million, 30.1 percent loan-to-value): 140-150 basis points over three-month Euribor.
• Class B (€38.2 million, 38.3 percent LTV): mid-200s bps.
• Class C (€25.5 million, 43.7 percent LTV): Low 300s bps.
• Class D (€41.8 million, 52.6 percent LTV): Approximately 400 bps.
• Class E (€52.6 million, 63.8 percent LTV): Mid 500s bps.
• Class F (€17.35 million, 67.5 percent LTV): mid-to-high 600s bps.
Launch and pricing is targeted for this week, the bank said.
BAML provided the underlying €335 million senior loan to Blackstone last July to finance the €470 million purchase of the Kingfisher portfolio of German retail assets from Stenham Property. The loan is backed by a portfolio valued at €494.4 million of more than 50 properties of which DIY retail accounts for 37 percent of the market value, followed by 21 percent for retail parks, supermarkets at 12 percent, shopping centres at 10 percent and retail warehouses at 2 percent.