JPMorgan preps £251m/€131m CMBS on Blackstone hotels

JPMorgan is preparing to launch its dual-currency £251m/€131m Mint 2015 CMBS secured by two loans on three Hilton hotels.

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, in its Mint portfolio.

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

The official launch and pricing of the transaction will be on June 8.

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

Class A: £109.3m – AAA/AAA at 25.7% LTV

Class B: £42m – AA/AA(low) at 35.6% LTV

Class C: £14.2m – AA-/A(low) at 39% LTV

Class D: £48.8m – BBB+/BBB(low) at 50.5% LTV

Class E: £29.3m – BBB-/BB(low) at 57.4% LTV

Class F: £7.5m – BB+/BB(high) at 59.2% LTV

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

Class A: €54.8m – AAA/AAA at 24.8% LTV

Class B: €21.9m – AA/AA(high) at 34.7% LTV

Class C: €21.9m – A/A(low) at 44.6% LTV

Class D: €26.3m – BBB-/BBB(low) at 56.4% LTV

Class E: €6m – BB+/BB(high) at 59.2% LTV

The three hotels in Blackstone’s Mint portfolio are all 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. Five hotels have been sold since, reducing the senior loan component to £375m.