BAML prices Taurus 2015–1 IT CMBS at sub-190 bps blended coupon

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.

BAMLTaurus 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:


  • 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.

About CoStar News

Finance Editor, CoStar News
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