RBS has issued initial pricing guidance for its £170m five-year Antares 2015-1 CMBS, the securitisation of a loan to refinance Kennedy Wilson’s Jupiter portfolio of 17 UK office and retail assets.
The CMBS has two classes of floating-rate notes: a £130.6m, class A note and a £39.4m class B. The Class A notes, rated A by both DBRS and Fitch, sit at a loan to value of 44.3% and are guided to price at 185bps over 3 month Libor. The loan-to-value of the Class B notes, rated BBB-, is 57.6% and they are forecast to price at 300bps over.
The notes have an expected maturity of December 2019 and a legal final maturity of December 2022. The deal is made-up of one loan secured against 17 properties after one asset was sold this month. They have a remaining average loan term to next break of 7.3 years. The office and retail properties are located 44% in England and 56% in Scotland.
RBS said the recently completed sale of Teeside Leisure Park in Stockton-On-Tees saw a prepayment of £1.1m on the loan. The capital structure of the issuance had been amended to reflect the prepayment.
The bank will retain a material net economic interest of at least 5% of the underlying £179m loan rather than of the bonds.
RBS underwrote the refinancing in September 2014 following Kennedy Wilson’s purchase of the Jupiter portfolio out of receivership in June, for £296m. The property company had already acquired the B loan notes relating to the debt of the previous owner, which sat underneath the distressed Fordgate Commercial Securities 1 CMBS loan.
The portfolio was previously owned by Moises and Mendi Gertner’s Fordgate and the B note and the assets were sold by special servicer, Mount Street.