Bank of America Merrill Lynch (BAML) has priced the private equity-sponsored €286.425m Taurus 2015–1 IT securitisation this afternoon at a blended coupon of 186 basis points.
Taurus 2015–1 IT is the securitisation of three commercial real estate loans – one each to Orion, Blackstone and Cerberus – and secured by a combined 14-strong portfolio of offices, fashion outlets and shopping centres in Italy valued at €482.0m.
The final pricing achieved was:
CLASS SIZE EXP.RATINGS FINAL PRICE
- A €206.0m [A+/A] 3mE+150
- B €23.0m [A/A] 3mE+190
- C €34.25m [BBB/BBB(L)] 3mE+250
- D €23.175m [BB/BB(L)] 3mE+410
The portfolio level LTV of 62.5% reflects the leverage point based on the €301.5m combined loan balance prior to the €15.07m carved out by BAML to comply with the 5% EU directive retention rules.
The blended coupon on Taurus 2015–1 IT is 186 basis points.
The three loans – the €115.0m Globe Loan at priced 230 basis points; the €85m Fashion District Loan priced at 270bps; and the €101.5m Calvino Loan priced at 325bps – reflected a blended loan margin of 273bps.
This reflects a spread of 87 basis points which, after assuming circa 27bps for costs, implies an annual profit for BAML in year one of circa €1.7m.
Fitch Ratings and DBRS are rating Taurus 2015–1 IT. The master servicer, Zenith, has delegated primary and special servicing roles to Mount Street Mortgage Servicing. BAML has provided a €19m liquidity facility.
For the full details of the underlying loans and the property portfolio, please click CoStar News’ previous story here.
CoStar Finance 