38 International Financing Review February 29 2020Domivest sold its debut BTL RMBS in
-AYûLASTûYEAR ûTHEûlRSTûPUREûBUY
TO
LETû
RMBS from the Netherlands, although
RNHB has previously sold deals mixing BTL
loans with small CRE ones.
Domivest’s Domi 2019-1 picked up a
healthy 2.5 times subscription for the
€213.6m four-year Triple As, which were
priced at 85bp over three-month Euribor.
There were also four mezzanine tranches
publicly marketed and sold.
Citigroup and Macquarie WEREûJOINTû
ARRANGERSûANDûJOINTûLEADSûFORûTHATûDEALû/Nû
THEûNEWûISSUEûTHEYûREMAINûJOINTûARRANGERS û
but Barclays will work alongside them as a
JOINTûLEAD
The roadshow started last week and will
continue this week.
Thursday’s second BTL announcement
came from the UK’s LENDINVEST. It has
mandated Citigroup as sole arranger, and
Citigroup, JP Morgan and NAB ASûJOINTûLEADû
managers, for multi-tranche MORTIMER BTL
2020-1.
Like Domivest, Lendinvest brought its
debut BTL RMBS to market last year, via
BNP Paribas, Citigroup and HSBC.
But the deal struggled during
marketing: its £215.1m Triple As came
10bp wide of initial price thoughts, where
they had been only 0.7 times covered, to
print at Sonia plus 130bp. The deal also
sold three mezzanine note tranches and a
Class X.
To make matters worse, before the deal
closed Moody’s had to downgrade ratings
on three of the mezzanine tranches after it
discovered an error in its own analysis
relating to Sonia. The Classes D, E and X
were each lowered by one notch.
It is not known if Moody’s will rate the
second deal – the structure has not yet
been released.CREDIT AGRICOLE ANNOUNCES FRENCH
RMBSCREDIT AGRICOLE announced a new French
home loans RMBS on Tuesday, offering
investors €1bn of 4.88-year Triple A paper.
The deal is backed by loans originated by
the 39 Caisses Regionales that belong to
the Credit Agricole group.
A roadshow for CREDIT AGRICOLE HABITAT
2020 started on Wednesday and pricing is
expected next week, with Credit Agricole
sole lead manager.
The issuer’s last placed transaction from
the programme was in 2018, when it sold a
lVE
YEARûõBNûTRANCHEûATûAûBPûDISCOUNTû
margin. A 2019 new issue was retained.
The last comparable euro-denominated
RMBS was Obvion’s Dutch trade Storm
ûINû*ANUARY ûWHICHûSOLDûlVE
YEARû
seniors at a 15bp discount margin.And the most recent French RMBS was
from BPCE, which sold €1bn 2.75-year Triple
As at a 24bp discount margin in October last
year.
One slight structural tweak since the 2018
Credit Agricole RMBS involves the step-up:
in 2018 this was 1.5 times initial coupon,
and that coupon had been pre-set at 50bp
over three-month, with the issue price
above par.
The new issue has the coupon pre-set at
75bp, and the step-up will be 120bp.
4HEûPORTFOLIOûWILLûREVOLVEûFORûTHEûFULLûlVEû
years until the January 2025 expected
maturity. The portfolio is sized at €2.05bn
and holds 15,783 loans with an average
€129,591 outstanding.
The weighted average interest rate is
2.02%, seasoning is 48 months, the WA
original loan-to-value is 92.86% and the WA
current loan-to-value is 79.64%.TWENTYFOUR READIES SECOND
OAT HILL RMBSOAT HILL NO.2ûHASûBEENûlLEDûATû#OMPANIESû
(OUSEûANDûCOULDûBEûAûRElNANCINGûOFûTHEûlRSTû
Oat Hill buy-to-let RMBS from May 2017.
That deal has a call date in May.
Oat Hill No.1 securitised a £587m
PORTFOLIOûOFûlRST
RANKINGû"4,ûMORTGAGESû
originated and serviced by Capital Home
,OANSû#(, ûOWNEDûBYûPRIVATEûEQUITYûlRMû
Cerberus.
The mortgages were bought by a
TWENTYFOUR ASSET MANAGEMENT fund called UK
Mortgages, which acted as seller in the
securitisation.
An update from UK Mortgages on
Wednesday noted that another 2017
securitisation of CHL mortgages, Auburn
ûHADûBEENûRElNANCEDûEARLIERûTHISû
month.
It said Auburn 11, which came to market
three months before Oat Hill No.1, was
effectively a “sister” deal to Oat Hill, with
the two deals having very similar
portfolios.
“CHL ... employed a more aggressive
CAPITALûSTRUCTUREû;FORûTHEûRElNANCING=ûTHANû
we are likely to use, but the pricing
outcome gives us a good guide as to what
levels we may be able to achieve assuming
similar market spreads,” the UK Mortgages
statement said.
If the structure and pricing of any
RElNANCINGûOFû/ATû(ILLû.OûWEREûSIMILARûTOû
THEû!UBURNûûRElNANCING ûITûESTIMATEDûAû
possible weighted average funding cost in
the range of Sonia plus low to mid 90s.
The 2017 Oat Hill RMBS was arranged by
Bank of America, which was a lead with
NatWest Markets. The £477.1m Triple-A
tranche was sold at 85bp over three-month
,IBOR ûANDûTHEûJUNIORûNOTESûWEREûRETAINEDBofA GETS DUTCH CMBS TAURUS 2020-1
AWAYBANK OF AMERICA priced a chunky €620.6m
Dutch CMBS TAURUS 2020-1 NL on Friday
afternoon through sole lead BofA Securities.
The deal is backed by a portfolio of 76
OFlCESûANDûûURBANûLOGISTICSûPROPERTIESû
acquired by Blackstone as part of its
US$4.69bn acquisition of Dream Global REIT
in December last year.
Initial price thoughts were released on
Wednesday, putting the Triple A notes at
80bp–90bp over three-month Euribor. With
the tranche 1.3 times covered on Thursday,
GUIDANCEûWASûLEFTûUNCHANGEDûANDûlNALû
pricing on Friday was at 90bp.
Pricing for the lower rated tranches came
broadly in line with IPTs. The AA–/AA–
(Fitch/KBRA) Class B came at 130bp, the
A–/A– Class C at 155bp and the BBB–/BBB–
Class D at 200bp.
At the bottom of the stack the BB–/BB
Class E, which had been shown covered at
IPTs of low 300s, was priced wide at 360bp.EMEA ABS
VW FINDS STEADY DEMAND FOR NEW
GERMAN LEASING ABSVOLKSWAGEN LEASING shrugged off the growing
coronavirus concerns on Wednesday pricing
a well-covered new issue from its VCL
programme of German auto securitisation.
Investors in the senior tranches from
benchmark German auto ABS often use the
Triple A rated, liquid and short-dated paper
as a slightly better yielding equivalent to
other more costly places to park cash in the
ultra-low interest rate environment of the
past few years.
The €941m of 1.23-year Triple A (S&P/
Fitch/Creditreform) notes from VW’s VCL 30
were priced at a 16bp discount margin over
one-month Euribor, well inside the 20bp
area initial price thoughts released on
Monday.
4HEûlNALûBOOKûWASûûTIMESûCOVERED ûAû
slight increase from the 1.6 times reported
at those IPTs on Wednesday morning,
before the leads released price guidance of
17bp +/-1 (WPIR).
Unlike the seniors, the leads were able to
shake out some demand from the
mezzanine tranche. The €19m AA-/A+/AA-
Class B was 2.9 times covered after 80bp
area IPTs, and after guidance of 70bp-75bp
(WPIR) the tranche was priced around 1.2
times done at 70bp. The new issue was lead
managed by BofA Securities, LBBW and
UniCredit.
VW’s previous issue off the German VCL
shelf was in October last year, when it sold6 IFR Bonds 2322 p 25 - 43 .indd 38 28 / 02 / 2020 19 : 15 : 32