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Pepper has priced its second public securitisation issue using prime loans originated by GE Capital.
According to a statement from Pepper, the issue was well supported by a total of 15 accounts, including 10 domestic investors and five offshore investors, many of whom have previously participated in Pepper’s non-conforming issues.
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“This deal was completed in order to refinance a portion of the acquisition financing that was used to fund our purchase of the GE loan portfolio in 2011,” Pepper’s group treasurer Todd Lawler said.
“Following the success of our last prime transaction we have utilised a similar deal structure that includes the US$250m A-u1 tranche. We also ensured this transaction is compliant with European regulations to widen the potential distribution.
“We anticipate doing further issues backed by GE-originated collateral over time, tapping into US, European and Australian markets as conditions permit.
“We were delighted with the investor response to this transaction and the overall strength collateral and diversity of the book. It strongly endorses our business model and reputation as a high quality issuer and servicer in this market.”
Pepper’s group managing director and CEO Patrick Tuttle said the Pepper Prime transaction demonstrates that there is genuine investor demand for Australian RMBS paper from quality non-bank issuers with strong servicing and asset performance history.
“This is our fifth RMBS issue since late 2010 and our second backed by prime, mortgage-insured collateral. I am particularly delighted by the breadth and quality of real money investors who have supported this transaction at the strong pricing levels relative to recent bank RMBS issuers.”
