JPMorgan prices the dual currency Blackstone Mint CMBS

JPMorgan has priced the dual currency the Mint CMBS, the securitisation of a loan which refinanced Blackstone’s rebranded three-strong DoubleTree by Hilton portfolio, achieving blended coupons of 202 and 187 basis points for the sterling and euro tranches, respectively.

Final pricing for the sterling tranche was as follows:

Class                     Size                       Rating(S&P/DBRS)          Margin 

  • Class A                 £109.259m          AAAsf/AAAsf                      1.30%   
  • Class B                 £42.023m            AAsf/AA(low)sf                  1.60%
  • Class C                 £14.228m            AA-sf/A(low)sf                   1.90%
  • Class D                 £48.768m            BBB+sf/BBB(low)sf          2.75%
  • Class E                  £29.318m            BBB-sf/BB(low)sf              3.50%
  • Class F                  £7.488m              BB+sf/B(high)sf                 4.50%
  • Total                     £251.084m                                                       2.02% (blended margin)

Final pricing for the euro tranche was as follows:

Class                     Size                       Rating(S&P/DBRS)          Margin 

  • Class A                 €54.789m            AAAsf/AAAsf                      1.20%   
  • Class B                 €21.915m            AAsf/AA(high)sf                 1.60%
  • Class C                 €21.915m            AA-sf/A(low)sf                   2.00%
  • Class D                 €26.298m            BBB-sf/BBB(low)sf           2.90%
  • Class E                  €6.048m              BB+sf/BB(high)sf              3.90%
  • Total                     €130.965m                                                       1.87% (blended margin)

Both sterling and euro loans were priced at 229 basis points, over three-month LIBOR and EURIBOR, respectively, equating to a loan skim excluding fees of  27 and 42 bps for the sterling and euro tranches, respectively.

On a sterling basis the first year annual fee, excluding the impact of servicing fees, rating agencies fees and legals etc, is approximately £1.07m. On a euro basis, the first year annual fee, again excluding fees, approximately €1.49m.

Expected note maturity is 22 February 2018 with the legal final maturity seven years later.

The aggregate market value of the portfolio is £632m across the two central London hotels – located at Tower of London and Westminster – and one hotel in Amsterdam which have a combined 1,600 rooms.

CBRE Loan Serving has been appointed the initial primary, special servicer and the senior facility agent.  

According to the offering circular, a £55,000 (exclusive of VAT) per annum servicing fee is paid by the senior borrowers to the senior facility agent for so long as the servicer and the senior facility agent are the same entity. The transaction’s rating agencies – Standard & Poor’s and DBRS –will be paid £47,000 per annum.

Last December, JPMorgan refinanced Blackstone’s originally eight-strong portfolio with an additional circa £100m mezzanine loan which was also tranched in sterling and euros.

The £75.5m sterling tranche and €30.9m euro tranche each carried a 6% margin and was also securitised – in a transaction called Mint Mezzanine 2014 Limited – at the beginning of the year,  believed to have been privately placed with just one or two accounts who needed to hold the loan in bond form. 

The outstanding principal balance of the securitised mezzanine loan has fallen to £58.7m and €30.7m, following the sale of the five hotels since JPMorgan’s initial £385m refinancing last December. The mezzanine Mint CMBS matures on 26 February 2018.

jwallace@costar.co.uk

About CoStar News

Finance Editor, CoStar News
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