Pepper Group has priced its second $1 billion non-conforming RMBS issue PRS21

Posted: 31-07-2017

Pepper Group has priced its second $1 billion non-conforming RMBS issue, Pepper Residential Securities Trust No 21 (PRS21). This transaction is Pepper’s third securitisation for the year and comes just 4 months since its first ever billion dollar transaction.

Strong demand from both new and repeat investors saw the transaction upsized from its original size of $700m, with the issue being supported by 29 separate investors from the US, Australia, Europe and Asia.

Pricing was competitive in a widening market. Pepper structured the transaction in a manner that met the needs of its growing global investor base. The US dollar tranche once again enjoyed strong support.

Paul Byrne, Group Treasurer at Pepper Group said “Our ever-increasing offshore investor base ensured the book was well diversified and high calibre. From a book build perspective, the depth and breadth of investor engagement and support shown by both Australian and offshore clients in the US, Asia and Europe was very pleasing.”

“This outcome is a testament to the underlying quality of Pepper’s lending standards and reflects Pepper’s expertise as a lender to those customers who are underserved by the banks.” Pepper Group Australian CEO Mario Rehayem

Pepper Group was assisted in this transaction by National Australia Bank (Arranger) and nabSecurities LLC and Citigroup Global Markets Inc (Joint Lead Managers) and Commonwealth Bank of Australia and Westpac Banking Corporation (Co-Managers) on the US notes and Commonwealth Bank of Australia, National Australia Bank and Westpac Banking Corporation (Joint Lead Managers) on the AUD notes.

Since inception, Pepper has issued over AUD$13.2 billion of RMBS across 28 non-conforming and prime RMBS issues, making it one of the most experienced and regular issuers in the market.

The transaction settled today, 31 July 2018.

For more information please contact:

Pepper Money
Senior Marketing Communications Manager
Melissa Fanous
mfanous@pepper.com.au
0412 033 103