All bonds in the €754m Florentia securitisation, this year’s third public CMBS deal, have been sold, in a boost for the recovering primary-issuance market.
JPMorgan bought around 75% of the FLORE 2012-1 notes at weighted average pricing of 300 basis points over three-month Euribor.
The remaining bonds placed in the market were oversubscribed and buyers included insurer Ignis, ING and hedge fund Cheyne Capital.
The CMBS issue is secured against 28,859 multi-family German homes. Sponsor Vitus Immobilien is owned by Round Hill Capital, Blackstone, Aviva and Deutsche Bank. DB was sole bookrunner and lead manager.
There were five rated tranches and the published pricing for the five-year bonds was: 184bps over three-month Libor for the AAA-rated, €392m of class A notes, up to 39.6% loan-to-value ratio; 295bps for the AA-rated, €295m of class Bs, at an LTV ratio of up to 47.6%; 380bps for the A-rated, €141m of class Cs,
up to a 57% LTV ratio; 500bps for €50m BBB-rated class Ds, at a 60.3% LTV ratio; and 792bps for €50m BBB-/BBB-rated class Es, at an LTV ratio up to 63.6%.
M&G Investments acquired the deal’s £151.6m of mezzanine debt, after GIC pulled out. Despite FLORE having such a large cornerstone investor, a person who worked on the deal said deals of this size could be placed regularly. RBS has also sold over half of the bonds in Isobel Finance.