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In a statement issued yesterday, the non-bank lender announced the transaction was complete, which saw particular traction with offshore interests, making up 71.2 per cent of the total amount offered.
While this is Pepper’s 16th RMBS issue since 2003, co-group CEO Patrick Tuttle said this particular issue was “satisfying” given its size and reception.
“It is very satisfying to complete the largest non-conforming RMBS issue since emergence of the financial crisis in 2007,” Mr Tuttle said. “[It’s] a testament to the longevity of our programme and the loyal investor support we have both domestically and offshore.”
Arranged by NAB, the transaction was priced at $550 million, with NAB, CBA and Westpac joint lead managers for the Australian tranches and NAB Securities and Citibank lead joint managers for the US tranche.
“NAB is delighted to have arranged this transaction for Pepper, and to achieve an upsized transaction with five per cent risk retention was a particularly good result,” said the bank’s director, securitisation organisations, Sarah Samson.
“Overall it was a well-diversified book of investors, which is testament to Pepper’s commitment to exploring new markets and continuing issuance of transactions including foreign currency tranches.”
Pepper will retain a minimum of five per cent of each tranche in the structure, which the lender says is a “first for an Australian non-bank RMBS issuer”.