Liberty Financial (Liberty) today priced its A$1.0 billion Liberty PRIME Series 2021-1 RMBS issue, its sixty-sixth term securitisation and eighth securitisation backed by a portfolio of solely prime mortgages. Liberty’s total RMBS issuance for the month of March is over A$1.6 billion.
National Australia Bank (NAB) is the sole Arranger and a Joint Lead Manager, along with BofA Securities, Commonwealth Bank of Australia, Deutsche Bank and Westpac Banking Corporation.
The Liberty PRIME Series 2021-1 transaction comprises A$1.0 billion of notes rated by Moody’s Investors Service and Fitch Ratings (AAA notes only).
The A$850.0 million Class A1 notes to be rated Aaa(sf)/AAAsf, with a weighted average life of about 2.6 years, priced at a margin of 75 basis points over one month BBSW.
The A$44.0 million Class A2 notes to be rated Aaa(sf)/AAAsf, with a weighted average life of about 4.1 years, priced at a margin of 95 basis points over one month BBSW.
The A$43.0 million Class AB notes to be rated Aaa(sf)/AAAsf, with a weighted average life of about 4.1 years, priced at a margin of 115 basis points over one month BBSW.
The pricing of the Class B, C, D, E and F notes which are expected to be rated Aa2(sf), A2(sf), Baa2(sf), Ba2(sf) and B2(sf), respectively, are not disclosed.
The issue consists of a pool of prime residential mortgages with a weighted average loan-to-value ratio of 67%. In addition, the collateral is well seasoned at approximately 22 months.
Craig Stevens, Director Securitisation at NAB, said: “Liberty has once again confirmed its status as a major issuer of RMBS in the Australian market. We are extremely pleased with the level of investor participation across the capital structure and their interest in opportunities to buy collateral originated by Liberty Financial.”
Peter Riedel, Chief Financial Officer at Liberty, said: “Liberty is a leader in providing households and small businesses with the freedom to choose from a wide range of products and services to meet their financial needs. We are grateful for the support investors have extended to our business.”
Liberty has a rating of “STRONG” from Standard & Poor’s for the servicing of prime and non-prime mortgages as well as for servicing auto loans and commercial mortgages. Liberty is also Australia’s only investment grade rated non-bank issuer (BBB-, outlook stable by S&P) and one of only a few lenders with an unblemished capital markets record with no ratings downgrades or charge-offs ever experienced by its securitisation program.
© Liberty Financial Group Limited (ACN 125 611 574) and Liberty Fiduciary Ltd (ACN 119 884 623).