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The $400 million issue, Pepper Residential Securities Trust No. 13 (PRS 13), was placed with the help of joint lead managers CBA and NAB, who also worked with the lender to securitise half a billion dollars in non-conforming loans for the US market back in April.
“This is a significant transaction, not only for Pepper, but also the Australian securitisation market,” Pepper co-group chief executive Patrick Tuttle said.
“It’s pricing relative to prime issuance and the overwhelming investor interest reinforces the confidence the market has in Australian RMBS,” Mr Tuttle said.
“We are delighted with the strong support that we continue to receive from loyal repeat investors, with each of the tranches being oversubscribed and pricing inside the equivalent PRS 12 margins set in April 2014,” he said.
The issue was well supported by investors across the entire capital structure, many of whom were repeat buyers, Pepper Group treasurer Todd Lawler said.
“Our track record and commitment to always call our term deals at the first available date continues to attract strong support,” Mr Lawler said.
“This is a strong endorsement of Pepper’s business model, the credit quality of the underlying loan collateral and our expertise as a specialist mortgage servicer,” he said.
PRS13 is the fifteenth public issue of residential mortgage-backed securities backed by Pepper mortgages, increasing its total RMBS issuance to $5.6 billion.