RedZed prices $250m specialist mortgage bond

The non-bank lender has successfully priced its $250 million specialist RMBS transaction “RedZed Trust Series 2017-2”.

This marks RedZed’s fifth issue and, following the pricing of 2017-1 earlier this year, marked its total issuance in 2017 at $550 million.

“We appreciate our relationships with investors and I’m pleased our focus on self-employed borrowers continues to generate demand,” RedZed Lending Solutions managing director Evan Dwyer said.

Moody’s assigned preliminary ratings are as follows:

• The $150.00m Class A-1 Notes and the $56.50m Class A-2 Notes are all rated Aaa(sf).

• The $23.75m Class B Notes, the $4.75m Class C Notes, the $4.75m Class D Notes, the $4.25m Class E Notes and the $2.50m Class F Notes are assigned preliminary ratings of Aa2(sf), A2(sf), Baa2(sf), Ba2(sf) and B2(sf), respectively, with the offering completed by $3.50m of unrated Class G Notes.

NAB was the arranger and joint lead manager on the deal. The group’s director of securitisation originations and capital financing, Jonathan Mintz, said that RedZed is enjoying favourable market conditions.

Ernest Biasi, executive director – debt markets securitisation at CBA, the joint lead manager on the transaction, said that the Class A1 and Class A2 Notes tightened 20bps and 25bps, respectively, when compared to RedZed Trust Series 2017-1 in March 2017, demonstrating continued investor support for RedZed and the specialist lending sector.

The transaction is due to settle on 6 December 2017.

RedZed is a provider of residential, commercial and asset finance solutions to self-employed Australians. It has originated almost $2 billion in loans in Australia and distributes its products through a select group of accredited mortgage brokers on a national level.

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