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RedZed prices largest RMBS transaction to date

The specialist lender has priced a $550-million residential mortgage-backed securities transaction, its first of the year and largest to date.

RedZed Lending Solutions, a non-bank lender specialising in mortgages for the self-employed, has announced that it has successfully priced its $550-million RMBS transaction “RedZed Trust Series 2021-1”.

This is RedZed’s first transaction of 2021 and its largest transaction to date. 

This 10th debt capital markets issuance takes the lender’s total issuances to $3.5 billion so far.

It marks RedZed’s inaugural EU, UK and Japanese Risk Retention compliant transaction, which was supported 100 per cent by real money domestic and offshore investors across all tranches. 

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Chris Wilson, chief financial officer of RedZed, commented: “This transaction is RedZed’s first risk retention compliant transaction, and our largest securitisation to date. 

“We are pleased to see significant interest across all tranches of the transaction from new and existing investors, which signifies a strong commitment to our securitisation program and confidence in RedZed’s experience in lending to the self-employed borrower segment.”

CBA and NAB acted as joint lead managers on the transaction, which is due to settle on 31 March 2021.

According to Moody’s and Fitch preliminary ratings, the $412.5-million Class A-1 Notes and the $64.9-million Class A-2 notes were rated Aaa(sf)/AAAsf.

The $40.7-million Class B Notes, the $5.5-million Class C Notes, the $9.9-million Class D Notes, the $6.6-million Class E Notes and the $3.3-million Class F Notes are assigned preliminary ratings of Aa2(sf), A2(sf), Baa2(sf), Ba2(sf) and B2(sf), respectively.

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The offering was completed by $6.6 million of unrated Class G-1 and G-2 notes. 

[Related: RedZed prices $400m RMBS]

RedZed prices largest RMBS transaction to date
RedZed prices largest RMBS transaction to date
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