Liberty Financial (Liberty) today settled its A$1 billion Liberty PRIME Series 2021-2 RMBS issue, its sixty-seventh term securitisation. This is also Liberty’s ninth securitisation of securities backed by a portfolio of prime mortgages.
Deutsche Bank AG Sydney Branch (DB) is the sole Arranger and a Joint Lead Manager, along with BofA Securities, Commonwealth Bank of Australia, National Australia Bank, SMBC Nikko Capital Markets and Westpac Banking Corporation.
The Liberty PRIME Series 2021-2 transaction comprises A$1 billion of notes rated by Moody’s Investors Service and Fitch Ratings (AAA notes only).
The A$880 million Class A1 notes rated Aaa(sf)/AAAsf, with a weighted average life of about 2.5 years, priced at a margin of 70 basis points over one month BBSW.
The A$29 million Class A2 notes rated Aaa(sf)/AAAsf, with a weighted average life of about 4.0 years, priced at a margin of 90 basis points over one month BBSW.
The A$29 million Class AB notes rated Aaa(sf)/AAAsf, with a weighted average life of about 4.0 years, priced at a margin of 105 basis points over one month BBSW.
The pricing of the Class B, C, D, E and F notes rated Aa1(sf), A1(sf), Baa1(sf), Baa3(sf) and B2(sf), respectively, is not disclosed.
The issue consists of a pool of prime residential mortgages with a weighted average loan-to-value ratio of 66%. In addition, the collateral is well seasoned at approximately 26 months.
Kelly Mantova, Head of ABS at Deutsche Bank, said: “Liberty has once again confirmed its status as a major issuer of RMBS in the Australian market. We are very 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 positive 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).