JP Morgan prices £251m/€131m Mint 2015 CMBS

JP Morgan has priced its dual-currency £251m/€131m Mint 2015 CMBS secured by two loans on three Hilton hotels owned by Blackstone.

The CMBS is a new milestone for European CMBS as the first post-crisis multi-jurisdictional deal and the first purely hotels.

It also has a multi-class structure: Mint’s £251.2m offering has six classes and its €131m stack has five, all maturing in February 2018. The loans are floating rate, interest only with the loan-to-value ratio 59.2%.

The £251.2m issuance with preliminary ratings is comprised as follows:

Class A: £109.3m – AAA/AAA at 25.7% LTV – 130bps over 3m Libor

Class B: £42m – AA/AA(low) at 35.6% LTV – 160bps over 3m Libor

Class C: £14.2m – AA-/A(low) at 39% LTV – 190bps over 3m Libor

Class D: £48.8m – BBB+/BBB(low) at 50.5% LTV – 275bps over 3m Libor

Class E: £29.3m – BBB-/BB(low) at 57.4% LTV – 350bps over 3m Libor

Class F: £7.5m – BB+/BB(high) at 59.2% LTV – 450bps over 3m Libor

The €131m issuance with preliminary ratings is comprised as follows:

Class A: €54.8m – AAA/AAA at 24.8% LTV – 120bps over 3m Euribor

Class B: €21.9m – AA/AA(high) at 34.7% LTV – 160bps over 3m Euribor

Class C: €21.9m – A/A(low) at 44.6% LTV – 200bps over 3m Euribor

Class D: €26.3m – BBB-/BBB(low) at 56.4% LTV – 290bps over 3m Euribor

Class E: €6m – BB+/BB(high) at 59.2% LTV – 390bps obver 3m Euribor

Mint 2015 is yet to be officially rated but was the subject of a rare intervention on 12 June when Fitch Ratings, which has not rated the CMBS, said it would have taken a more conservative stance than Standard and Poor’s and DBRS, which are rating it.

The top classes priced 20bps wider than the initial guidance given by JP Morgan. The lower tranches with the exception of the sterling-denominated D and E also priced wider.

The 2.7-year multi-tranche offering is secured by an equivalent £450m loan on Blackstone’s three remaining Hilton hotels, located in the UK and the Netherlands, from its Mint portfolio.

The three hotels all trade as DoubleTree by Hilton, located at Tower Hill and Westminster in London, and by Centraal Station in Amsterdam.

JPMorgan supplied a £450m senior loan and a £100m mezzanine to Blackstone in December to refinance the Mint portfolio which then consisted of eight hotels. The bank structured a separate mezzanine note which was sold to Cheyne Capital, Insight and Och-Ziff. Five hotels have been sold since, reducing the senior loan component to £375m.