Deutsche Bank priced the inaugural single family rental transaction, the $479 million Invitation Homes 2013-SFR1 single family rental securitization transaction 5 basis points to 35 basis points tighter than initial guidance, a person familiar with the deal confirmed.
Invitation Homes, a Blackstone portfolio company, manages the nation's largest portfolio of single family homes being rented. The company has $7.5 billion of investments in the single-family home rental market.
The transaction had six sequential floating rate tranches. The classes were rated by Moody's Investors Service, Kroll Bond Ratings and Morningstar.
The Aaa’/ AAA’/ AAA’ , class A notes structured with a weighted average life of 4.9-years priced at 115 basis points over the one-month Libor, around 5 basis points tighter than initial price talk.
The Aa2’/’AA’/ AA’, class B notes structured with a weighted average life of 5.1-years, priced at 135 basis points over the one month Libor, at least 15 basis points tighter than price talk.
The A2’/ A’/ A’, class C notes, structured with a weighted average life of 5.1-years priced at 185 basis points over the one month Libor, also 15 basis points tighter than price talk.
Lower down the credit curve, the class D, E and F notes all priced around 35 basis points tighter than initial price talk. The Baa2’/ BBB’/ BBB+’, class D note structured with a weighted average life of 5.1-years priced at 215 basis points over the one month Libor.
The BBB-/ BBB-’, class E notes structured with a weighted average life of 5.1-years priced at 265 basis points over the one month Libor.
KBRA rated the class F notes BB’ which were structured with a weighted average life of 5.1-years and priced at 365 basis points over the one month Libor.
