UPDATE 2-RBS Commercial Funding prices $309.7 mln CMBS

(Adds pricing details)

By Nancy Leinfuss

NEW YORK, April 9 (BestGrowthStock) – RBS Commercial Funding on
Friday priced a $309.7 million commercial mortgage-backed
securities offering backed by multiple loans, the first sale of
its kind in nearly two years and a benchmark for the recovering
market.

The so-called conduit deal is seen as a key gauge of risk
appetite for securities tied to the troubled commercial real
estate market, as well as investor confidence in better
underwriting standards for loans.

The offering is also being priced without the help of the
Federal Reserve’s emergency loan program, which expires in June
for new-issue CMBS.

The securitization is backed by 81 commercial properties in
states that include Texas, New York, Missouri, Wisconsin and
New Jersey. It is the first multi-loan sale since 2008, when
the financial crisis and slowing economic growth began to upset
the $700 billion CMBS market.

The deal’s largest $220.3 million AAA-rated 4.93-year
tranche was priced at a 90-basis-points spread over
interpolated swaps, while a smaller $20.4 million AAA-rated
2.51-year issue priced at a spread of 80 basis points over
interpolated swaps, market sources said.

Also included in the sale was a AA-rated 4.98-year issue
that priced at a spread of 190 over swaps, an A-rated 4.98-year
issue priced at a spread of 290 basis points over swaps and a
BBB-rated issue that priced at a spread of 425 basis points
over swaps, the sources said.

RBS Commercial Funding’s sale follows two single-issuer
CMBS deals that were sold in December 2009. The latest sale
reflects the improved tone in the secondary market, where
spreads continue to trade tighter.

Two non-TALF sales were sold late last year as conditions
in the CMBS market began to improve. JPMorgan Chase underwrote
Inland Western’s $500 million CMBS offering, backed by the
Inland Western Real Estate Trust. Its two top tranches sold at
spreads of 150 and 205 basis points over swaps respectively,
market sources said.

In addition, Banc of America Securities underwrote Fortress

Investment Group’s $460 million AAA-rated issue at a spread of
225 basis points over swaps, sources said.
Stock Today

(Additional reporting by Al Yoon; Editing by Andrew Hay)

UPDATE 2-RBS Commercial Funding prices $309.7 mln CMBS