Pepper launches PRS 23 RMBS deal
- Tuesday, 19 February 2019
On 19 February, Pepper Group (Pepper) launched its capped A$750 million (US$534.6 million) equivalent residential mortgage-backed securities (RMBS) transaction, PRS 23. The deal includes a US dollar denominated tranche as well as a euro denominated tranche backed by green mortgages. Pricing is expected on or around 21 February.
PRS 23 indicative price guidance and structure
| Tranche | Indicative volume (m) | Expected ratings (S/M) | Weighted-average life (no. of years) | Indicative price guidance (bp area) |
|---|---|---|---|---|
| A1-u | US$190 | AAA/Aaa | 1.5 | ND/1m US Libor |
| A1-a | A$100 | AAA/Aaa | 2.4 | 145-150/1m BBSW |
| A1-G€ | €100 | AAA/Aaa | 2.5 | 125/3m EURIBOR |
| A2 | A$109 | AAA/Aaa | 3.9 | 225-230/1m BBSW |
| B | A$52 | AA/NR | 3.9 | 255-260/1m BBSW |
| C | A$22 | A/NR | 3.9 | 330/1m BBSW |
| D | A$16 | BBB/NR | 3.9 | 430/1m BBSW |
| E | A$9 | BB/NR | 3.7 | 630/1m BBSW |
| F | A$8 | B/NR | 2.7 | 750/1m BBSW |
| G | A$9 | NR/NR | 5 | ND |
Source: Westpac Insititutional Bank 19 February 2019
The Class C, D, E and F notes are no longer available for sale. Westpac Institutional Bank is arranger for the transaction, and joint lead manager for the Australian dollar denominated tranches alongside Commonwealth Bank of Australia and National Australia Bank. Citi is sole lead manager for the US dollar denominated tranche, while Societe Generale and Standard Chartered are joint lead managers for the euro denominated tranche.
