Bank of America Merrill Lynch has priced the €445m TAURUS 2015-2 DEU CMBS at a blended coupon of just under 200 basis points, excluding fees.
Final pricing down the capital structure and subscription demand were as follows:
Class Size Exp. Ratings LTV WAL IPT
- Class A €153.0m AAA/Aaa 25.0% 4.4 3mE+90
- Class B €61.2m AA/Aa2 35.0% 4.8 3mE+130
- Class C €61.2m A/A3 45.0% 4.8 3mE+170
- Class D €55.7m BBB/Baa3 54.1% 4.8 3mE+220
- Class E €74.1m BB-/Ba2 66.2% 4.8 3mE+350
- Class F €39.8m B/B2 72.7% 4.8 3mE+450
The blended coupon is 198.25 bps, which reflects a 65 bps skim on the 263.5 bps margin over three-month Euribor, excluding issuer costs, legal fees and servicing fees. Situs has been appointed as primary and special servicer.
Final pricing also reflect 15.75 bps tighter than BAML’s initial pricing guidance issued on Monday mid-morning, with notable improvements in the two junior securitised note classes.
Final oversubscription levels across the capital structure strong: 2.2x the As; 1.4x the Bs; 2.9x the Cs; 2.2x the Ds; 3.7x the Es; 3.3x the Fs.
BAML distributed to 36 investors across all tranches, comprised of 78% funds, 16% agency clients and 6% banks. By Geography, these investors were 55% UK based, 28% European and 17% in the US.
The single five-year loan in TAURUS 2015-2 DEU CMBS is secured by IVG Immobilien’s The Squaire at Frankfurt airport, which is valued at €644m, according to CBRE.
The loan amortises by 5.0% over its term. Its event of default covenants are triggered at an 80.0% LTV ratio, or a 1.20x debt service coverage ratio (DSCR). A 1.30x DSCR would trigger a mandatory cash trap.
By gross rental income (GRI), The Squaire is split: office 57%, hotel 34%, retail 3% and other 6%.
BAML will retain on an ongoing basis a material net economic interest of at least 5% of the underlying loan. BAML has provided a €43m liquidity facility.
The Squaire, a joint project between IVG Immobilien AG and Fraport AG, comprises usable space of 144,785 sqm, containing offices, two hotels, a business and conference centre and an infrastructure tailored to working life, with restaurants, shops, doctors, fitness facilities, a crèche and services from hairdressing to cleaning.
The debt yield is 7.1%, current occupancy is 85.2%, gross rent is €40m and net operating income is €33.4m. According to CBRE, the property has a €4,514 value per sq m. WAULT to expiry 10.3yrs; WAULT to first break 9.5yrs.