RedZed settles $500m RMBS

RedZed Lending Solutions (RedZed) has announced that it has successfully settled a $500 million residential mortgage-backed securities (RMBS) transaction, its third transaction of 2023.

RedZed Trust Series 2023-3 was the company’s 18th debt capital markets issuance and takes the lender’s total issuance to over $7.1 billion.

RedZed said the issuance features its EU and UK risk retention compliant structure, which was supported by real money domestic and offshore investors across all tranches.

Chris Wilson, chief financial officer of the non-bank lender, commented: “We are pleased to have firm support from real money investors across all tranches of the transaction, which signifies a strong commitment to our securitisation program and confidence in RedZed’s experience in lending to the self-employed borrower segment.”

RedZed’s managing director, Calvin Cordle, acknowledged the show of support for the organisation’s business model and support for self-employed borrowers, which the successful RMBS reflected.

Mr Cordle stated: “We are really pleased with the strength of support, from both our RMBS investors and bank warehouse providers, which means we are really well funded, firmly open for business and able to support self-employed borrowers with fast, fair, and simple lending solutions during a challenging market.

“Borrowers need stable, well-funded lenders during this time.”

The lender confirmed that NAB, Westpac, and Commonwealth Bank of Australia acted as joint lead managers.

According to Fitch and Moody’s assigned preliminary ratings, the $375 million Class A-1 notes and the $67 million Class A-2 notes were rated AAAsf/Aaa(sf).

The $33.5 million Class B notes were rated AAsf/NR, $10 million Class C at Asf/NR, $7.5 million Class D at BBDsf/NR, $3.5 million Class E at BBsf/NR, and $2 million Class F notes at B+sf/NR.

RedZed leadership reshuffle

The $500 million RMBS follows the non-bank lender making additions to its leadership team in July earlier this year.

RedZed appointed former chief transformation officer, Paul Dontschuk, as chief operating officer, and one of the organisation’s founding team members, Loralle Slater, as its chief sales and marketing officer.

Taking on the role in a permanent capacity, Mr Dontschuk expressed his excitement at helping lead the non-bank lender forward.

He commented: “The opportunity to lead an expert team who are committed to supporting our self-employed customer base over the past six months as acting COO has been incredibly energising.

“I am delighted to accept the position on a permanent basis.”

Having previously served as RedZed’s chief operating officer, Ms Slater revealed her eagerness to take on the new role.

She stated: “I’m really looking forward to channelling my energy into a different area of the business and taking on a new challenge.”

[Related: RedZed appoints COO]