BAML syndicates Coeur Défense mezzanine to BAWAG

Bank of America Merrill Lynch has syndicated around a third of the €130m mezzanine debt secured against the Coeur Défense tower in Paris to Austrian bank  BAWAG. BAML underwrote a €935m whole loan in February for Lone Star’s €1.3bn purchase of the iconic building. The five-year refinancing was structured as a 60% LTV senior loan and a mezzanine […]

 Coeur Défense 3 crop2Bank of America Merrill Lynch has syndicated around a third of the €130m mezzanine debt secured against the Coeur Défense tower in Paris to Austrian bank  BAWAG.

BAML underwrote a €935m whole loan in February for Lone Star’s €1.3bn purchase of the iconic building. The five-year refinancing was structured as a 60% LTV senior loan and a mezzanine facility up to 72% LTV.

AXA Real Estate owns an equal, €44m share of the mezzanine tranche as part of its €318m participation in the whole loan across both tranches, secured at the time the deal closed.

The margin on the mezz is around 700 basis points.

BAML plans to sell down more of the senior loan, offered at a margin of above 200 bps. This pricing  has moved up from 180-200 bps initially.

Aareal Bank and Acofi have both looked at buying into the senior but decided against it.

One source with knowledge of the deal said: “The structure is challenging. It’s an attractive asset but one issue is that the structure is not advantageous for senior lenders because insolvency rights are diluted for the senior.”

BAWAG, which targets deals with margins of at least 400 bps, announced earlier this week that it has made its first loan in the UK healthcare sector, acquiring £50m from Lloyds of a £225m loan made by the UK bank to Quercus Healthcare Property Partnership.

 

 

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