wide of IPTs but getting better traction at
the Triple B and Double B levels.
The deal securitises a single loan from
Morgan Stanley on a portfolio of logistics
properties in Germany and the Netherlands
owned by MStar Europe. MStar is a joint
venture between Starwood Capital Group
and M7 Real Estate.
IPTs for the €113.7m Class A1 Triple As
were three-month Euribor plus 70bp-low
70s. They were 1.1 times covered ahead of
72bp-75bp guidance and priced at 75bp.
The €23.7m Class A2 tranche, rated AAA
by DBRS and AA by S&P, had IPTs at low 80s
and guidance at 90-95bp. It was priced at
95bp.
The €12.4m AAL/AA- Class B widened
from 95bp-100bp IPTs to 110bp-115bp area
guidance and priced at 115bp. The AL/A-
Class C, for €28.5m, struggled at IPTs of
low-mid 100s where it was just 0.2 times
covered before guidance at 160bp area. Final
pricing was 170bp.
It was a different story for the €22.9m
BBBL/BBB- Class Ds, which went 3.6 times
covered after IPTs of 200bp-low 200s and
priced at 230bp following guidance at that
level. The €19.7m BB/BB- Class E had IPTs of
mid-high 300s and went 4.6 times covered,
BEFOREûGUIDANCEûOFûBP
BPûANDûlNALû
pricing at 325bp.
The tranches all have average lives of 4.49
years, which assumes the two one-year loan
EXTENSIONSûAREûEXERCISEDû4HEûINITIALûLOANû
maturity is in January 2021.
The loan pays 200bp over three-month
Euribor and is sized at €282.5m but only
€232.5m, or 82%, is sold to the SPV. Morgan
Stanley will retain the remaining €50m. A
5% interest in the securitisation will also be
held by Morgan Stanley as a vertical risk
retention loan.
The loan has an initial LTV of 67.5% and
gross rental income of €32.6m. There are 50
properties at 88.3% occupancy, with 443
tenants. Light industrial properties make up
ûOFlCESûûANDûOTHERSû
Morgan Stanley was arranger and lead
manager, and Wells Fargo was co-manager.IPTs OUT FOR BAMS CMBS 2018-1IPTs were released on Thursday for BAMS
CMBS 2018-1, the UK CMBS sponsored by
BLACKSTONE and securitising a loan from Bank
of America Merrill Lynch and Morgan Stanley.
The two banks are joint arrangers and joint
leads.
4HEûDEALSûaMû4RIPLEû!Sû&ITCHûANDû$"23 û
are at three-month Libor plus 80bp area. The
£31.9m AA/AAL Class Bs are low 100s, the
£26.2m A+/AL Class Cs are mid-high 100s, the
£41.3m BBB+/BBBL Class Ds are low 200s, and
the £49.2m BB-/BBL Class Es are mid 300s.
Pricing is targeted for early to the middle
of this week.
Blackstone is buying a 55% stake in
Thomson Reuters’ Financial and Risk unit,
which includes IFR.PARATUS CLOSE TO PRICING BTL TWIN
BRIDGESPARATUS AMC was due to price its second buy-
to-let RMBS on Friday as IFR went to press,
WITHûTHEûDEALûEXPECTEDûTOûGETûSTEADYû
EXECUTIONûDESPITEûOFFERINGûLONGERûPAPERûINûAû
crowded market.
Earlier on Friday the deal’s 4.2-year Triple
As were one time covered at guidance of
87bp-88bp over three-month Libor. The
EQUIVALENTûTRANCHEûFROMûITSûlRSTûDEALûINû*ULYû
came at 78bp.
“We’re getting later into July so the fact
it’s not massively oversubscribed is probably
not a surprise to anyone,” said an investor.
“The portfolio is standard professional
buy-to-let, but some of the structural
features probably make it a bit more tricky
to get on top of,” the investor said, pointing
to the coupon step-up amount of just 1.5
times and the step-up cap of 1%.TWIN BRIDGES 2018-1 is offering three 4.9-year
mezzanine tranches beneath the seniors.
4HEû!A!!û-OODYSûANDû&ITCH û#LASSû"ûWASû
1.6 times covered at plus 125bp, the Aa3/A
Class C was one time covered at plus 175bp
and the A3/BBB+ Class D was 2.1 times
covered at 200bp-205bp.
Joint leads Natixis ALSOûARRANGER ûANDûSMBC
Nikko provide warehouse facilities for
Paratus.EMEA ABS
BMW PAYS UP TO SELL UK AUTO ABSWide pricing for BMW FINANCIAL SERVICES’
second UK auto ABS last Wednesday showed
sterling market spreads continue to soften
on broader market concerns and sustained
sterling supply.
The pressure on sterling paper was
already clear two weeks ago when
Clydesdale Bank paid 10bp more than it had
in January to sell sterling paper from its
Lanark RMBS master trust, but BMW paid an
additional 18bp above its previous UK ABS
from October last year.
In late June there were seven sterling
deals in the new-issue pipeline. Most of
THOSEûHADûEXITEDûBYûTHEûENDûOFûLASTûWEEKûBUTû
a UK CMBS called BAMS remains, and
Barclays’ credit card ABS Gracechurch -
although that is offering dollars too.
Last Wednesday’s new issue, BAVARIAN SKY
UK 2, sold a £300m 1.86-year Triple A at 55bp
over one-month Libor, after IPTs on Monday
of low-mid 50s. Joint leads HSBC and Lloyds
said the book was over one time covered,
without giving further details.
"-7SûlRSTûDEALûINû/CTOBERûLASTûYEARûSOLDû
a larger £400m tranche with the same WAL
and near-identical portfolio stats at plus
37bp.
The UK auto market was already well
wide of those levels by May, when FCE
Bank’s Globaldrive sold £300m 1.86-year
SECURITISATIONS – ALL EUROPEAN RMBS Triple As at plus 50bp.
BOOKRUNNERS: 1/1/2018–30/6/2018
Managing No of Total Share
bank or group issues €(m) (%)
1 BAML 12 2,350.54 12.9
2 Lloyds Bank 9 2,210.78 12.1
3 JP Morgan 4 1,488.28 8.1
4 Cooperatieve Rabobank 2 1,355.98 7.4
5 BNP Paribas 5 1,353.44 7.4
6 Citigroup 6 1,340.18 7.3
7 Morgan Stanley 5 1,181.07 6.5
8 SG 1 1,074.57 5.9
9 Credit Agricole 1 1,015.28 5.6
10 Barclays 3 602.39 3.3
Total 29 18,279.68
Including Euro, foreign, global and domestics, excluding CDOs.Source: Thomson Reuters SDC code: B10aGLOBAL SECURITISATIONS IN STERLING
BOOKRUNNERS: 1/1/2018–30/6/2018
Managing No of Total Share
bank or group issues £(m) (%)
1 Lloyds Bank 12 1,640.02 19.1
2 BAML 11 1,230.82 14.3
3 MUFG 1 1,006.20 11.7
4 Citigroup 5 731.28 8.5
5 BNP Paribas 6 679.39 7.9
6 Natixis 4 512.92 6.0
7 HSBC 4 457.13 5.3
8 JP Morgan 2 333.75 3.9
9 Deutsche Bank 2 329.97 3.8
10 Morgan Stanley 2 305.69 3.6
Total 24 8,582.41
Including Euro, foreign, global and domestics, excluding CDOs.
Source: Thomson Reuters SDC code: B16i
EUROPEAN CLOs
BOOKRUNNERS: 1/1/2018–30/6/2018
Managing No of Total Share
bank or group issues €(m) (%)
1 Citigroup 9 3,670.02 27
2 Barclays 6 2,748.98 20
3 BAML 5 2,013.20 15
4 Credit Suisse 4 1,659.60 12
5 BNP Paribas 4 1,655.57 12
6 Morgan Stanley 2 822.40 6
7 Goldman Sachs 1 413.70 3
8 Deutsche Bank 1 410.25 3
=8 JP Morgan 1 360.80 3
Total 33 13,754.52
Including Leveraged Loans CLOs
Source: Thomson Reuters