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Hurricane Sandy pushes back pricing on $3B in CMBS bonds
Bond markets will be closed Tuesday
Hurricane Sandy – soon to make landfall – has delayed the pricing of almost $3 billion of commercial mortgage-backed bonds set to hit the market, the Wall Street Journal reported.
“This will be a minor interruption,” Christopher Sullivan, chief investment officer at the United Nations Federal Credit Union, told the Journal. “There’s nothing that should affect investor sentiment.”
Pricing could start again as soon as the hurricane passes, though transactions could be tough to finalize before Wednesday. The Securities Industry and Financial Markets Association has announced a full closure of bond markets for tomorrow.
The delayed bonds include a $1.05 billion bond backed by Blackstone’s Motel 6 portfolio. Another one is an $835 million refinancing of the Fashion Show Mall in Las Vegas. Fashion Show Mall was scheduled to price today, whereas Motel 6 was slated to price on Wednesday. Representatives declined to comment to the Journal. [WSJ] — Zachary Kussin