Deutsche Bank has released pricing guidance for its DECO 2015-HARP CMBS, the first secured by Irish collateral since 2006.
The Class A notes, which total €90m, sit at a loan-to-value of 32.3% and are expected to have an AA rating, are forecast to price at 120bps above Euribor. The Class D notes, which totally €12.5m, sit at a loan-to-value of 62.8% are expected to have a rating of BB+ and are forecast to price at 400bps above Euribor.
The full capital structure is as follows:
|Expected pricing (bps over Euribor)
As lead manager and sole bookrunner Deutsche Bank will retain 5% of the notes in each class. The deal is likely to be rated by S&P and Moody’s.
The three loans making up the underlying collateral are:
The Shamrock loan, an €87.6m facility taken out by Comer Group and secured against 12 residential assets in Dublin, Galway and Cork.
The New York loan, a €47.5m loan to Kennedy Wilson Europe Real Estate and secured against its Vantage building at Central Park in Dublin.
The Boland loan, a €39.9m loan taken out by Paddy McKillen and Johnny Ronan secured against the Treasury Building in Dublin.
A portion of any prepayment fees received during the lifetime of the loans will be passed back to noteholders – 10% for the Shamrock loan, 10% for the New York loan and 20% for the Boland loan. The remainder will be kept by Deutsche Bank.
The notes have an expected maturity of April 2022 and a legal final maturity of April 2027. The deal is made-up of three loans secured against 18 properties. They have a remaining average loan term to next break of 4.6 years. The residential, office and retail properties are located 88% in Dublin, 8% in Cork and 4% in Galway.