Goldman Sachs’ €198.2m Italian MODA 2014 CMBS closed yesterday at pricing wider than Deutsche Bank’s larger and lower- leveraged €354.9m Italian CMBS, both backed by strong sponsor Blackstone.
Class A MODA bonds priced at 148 basis points over three-month Euribor (45.4% LTV); Class Bs at 190 bps (50%); Class Cs at 255 bps (55.6%); Ds at 330 bps (56.7%); and Es at 410 bps (62.1%).
By contrast, Deutsche Bank’s DECO-2014 Gondola transaction priced two weeks ago at 145 bps for the class As (31.6% LTV); 175 bps for the class Bs (42.7%); 210 bps for the Cs (48.7%); 295 bps for the Ds (56.8%); and 370 bps for the Es (60.5%). The bank told Real Estate Capital pricing came slightly inside of where it was expecting owing to “good sponsorship and assets, moderate leverage, and a lack of supply”.
Both deals were oversubscribed: MODA by 4.2 times and Gondola by four times across the book. MODA is the securitization of two loans Goldman Sachs made to Blackstone, secured by five outlet malls and shopping centres. It marks the second Italian CMBS, and third European deal this year.
Bank of America Merrill Lynch’s £211.5m Taurus CMBS UK 2014-1 completes the set. It too was oversubscribed, by twice overall, pushing pricing for the Class As to 140 bps over three-month Libor (41% LTV) even without a liquidity facility. The Bs priced at 250 bps (56% LTV), and the Cs at 360 bps (65%).
The deal’s underlying collateral is a portfolio of 132 secondary assets and the sponsor is Apollo Global Investors.