(Bloomberg) -- Blackstone Inc. sold Canadian mortgage bonds backed by warehouses in areas including Toronto and Montreal, an unusual transaction for the Canadian dollar market.
The highest-rated portion of the C$522.5 million ($379.4 million) deal was priced at 190 basis points above the compounded Canadian Overnight Repo Rate Average, known as Corra. That portion is graded Aaa by Moody’s Ratings.
The bottom tranche, rated Baa3, the lowest investment grade rating from Moody’s, fetched 365 basis points above Corra, according to people familiar with the information, who declined to be identified as they aren’t authorized to speak about private deals.
Buyers of notes from the deal known as BX 2024-PURE will receive interest-only payments.
The deal was marketed by Citigroup Inc. and Royal Bank of Canada, and is backed by properties from Pure Industrial, a Canadian real estate investment trust that a Blackstone fund agreed to acquire in 2018.
Citi and Blackstone declined to comment, while RBC didn’t immediately respond to a request for comment.
CMBS deals are rare in Canada. A deal marketed in May was the first such instance in more than a year, according to data compiled by Bloomberg.
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