Pepper Money has announced that its PRS 26 transaction was successfully priced on 10 June, with its $700-million residential mortgage-backed security (RMBS) comprising a mix of prime and non-conforming mortgages.
According to Pepper, the program is designed to optimise the funding of its asset originations.
Commenting on the strong appetite and support from investors, Pepper treasurer Andrew Twyford said: “It was very pleasing to see strong appetite across the capital stack and broad participation from a range of investors who see value in investing in Pepper’s RMBS program.”
“With strong execution across all classes, this transaction is another example of the continuing support the Australian RMBS market is afforded from domestic and offshore bond investors.”
Pepper Group’s Australia CEO, Mario Rehayem, thanked the Australian Office of Financial Management for its willingness to participate in the transaction, despite no investment being required.
He also showed his appreciation for Pepper’s treasury team for their work in the transaction.
“The success of this transaction is due mainly to the tireless work of Pepper’s treasury team who deserve recognition for their efforts,” Mr Rehayem said.
“The team’s tenacity combined with the reputation of Pepper’s PRS program for quality underlying assets has produced an outstanding result for the business.”
Pepper also thanked the Commonwealth Bank of Australia (CBA) who was the arranger of the transaction, and NAB, Westpac, Macquarie Bank and Standard Chartered Bank for their work as joint lead managers in distributing the various note classes.
The transaction is scheduled to settle on 18 June.
Pepper Money previously issued a $750-million PRS in November last year, its second PRS for 2019.
[Related: Resimac closes $500m RMBS transaction]
If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.
Malavika Santhebennur is the features editor on the mortgages titles at Momentum Media.
Before joining the team in 2019, Malavika held roles with Money Management and Benchmark Media. She has been writing about financial services for the past six years.