A specialist lender has announced it priced its second $1billion non-conforming RMBS issue just yesterday.
This transaction is Pepper’s third securitisation for the year and comes just four months since its first ever billion dollar transaction.
Strong demand from both new and repeat investors saw the transaction upsized from its original size of $700m, with the issue being supported by 29 separate investors from the US, Australia, Europe and Asia.
Pepper said it structured the transaction in a manner that met the needs of its growing global investor base as it saw competition in a widening market.
Paul Byrne, group treasurer at Pepper Group said, “Our ever-increasing offshore investor base ensured the book was well diversified and high calibre.
“From a book build perspective, the depth and breadth of investor engagement and support shown by both Australian and offshore clients in the US, Asia and Europe was very pleasing.”
Pepper Group’s Australian CEO, Mario Rehayem said, “This outcome is a testament to the underlying quality of Pepper’s lending standards and reflects Pepper’s expertise as a lender to those customers who are underserved by the banks.”
Pepper Group was assisted in the transaction by National Australia Bank (Arranger) and nabSecurities LLC and Citigroup Global Markets Inc (Joint Lead Managers) and Commonwealth Bank of Australia and Westpac Banking Corporation (Co-Managers) on the US notes and Commonwealth Bank of Australia, National Australia Bank and Westpac Banking Corporation (Joint Lead Managers) on the AUD notes.
Since inception, Pepper has issued over AUD$13.2b of RMBS across 28 non-conforming and prime RMBS issues, making it one of the most experienced and regular issuers in the market.
The transaction settled yesterday, 31 July 2018.
