La Trobe Financial prices $250m RMBS Issue
Announcement posted by La Trobe Financial 08 Jun 2016
Ryan Harkness, La Trobe Financial’s Head of Debt Capital Markets stated "We are very pleased with the support for this transaction, we had strong demand that saw the order book scaled and real money investor support represented 78% of the book. Whilst retaining many of the investors from our previous transactions, we are extremely pleased to welcome many new investors into the La Trobe Financial RMBS programme. We are building the foundations for future programmatic RMBS issuances and look forward to continuing to be an active participant in the debt capital markets."
Commenting on the transaction, La Trobe Financial’s Chief Wealth Management Officer, Martin Barry said "La Trobe Financial arguably has the most diversified funding and capital raising program of all non-banks operating in Australia, incorporating large term debt facilities from local and international banks, a $1.1 billion dollar retail Credit Fund and now a larger and complementary RMBS capital markets programme. We are well positioned for funding to support our strategic growth plans."
Peter Taplin, Westpac’s Director of Structured Finance mentioned "As a long standing client we are very pleased to arrange our first RMBS transaction with La Trobe Financial. In volatile markets the transaction was well supported with substantial real money investment".
| Transaction details are as follows: Class | Expected Ratings (S&P) | Amount (A$m) | Credit Support | Coupon | Expected WAL (yrs) |
| Class A1 | AAA(sf) | 150.0 | 40.0% | BBSW1M + 1.75% | 2.1 |
| Class A2a | AAA(sf) | 27.5 | 18.0% | Undisclosed | 0.8 |
| Class A2b | AAA(sf) | 27.5 | 18.0% | Undisclosed | 2.1 |
| Class B | AA(sf) | 13.0 | 12.8% | Undisclosed | 3.7 |
| Class C | A(sf) | 11.0 | 8.4% | Undisclosed | 3.7 |
| Class D | BBB(sf) | 9.0 | 4.8% | Undisclosed | 3.7 |
| Class E | BB(sf) | 5.0 | 2.8% | BBSW1M + 7.50% | 3.7 |
| Class F | B+(sf) | 3.0 | 1.6% | BBSW1M + 8.25% | 2.3 |
| Equity | NR | 4.0 | 0.0% | Retained | 4.0 |
All tranches were priced at par.
Settlement: Wednesday 8 June 2016
Clean Up Call: The payment date which occurs on the earlier of:
- Four (4) years from the Settlement Date; and
- When the aggregate Invested Amounts of the Notes is less than 25% of the aggregate Initial Invested Amount of the Notes.
La Trobe Financial were assisted in the transaction by Westpac Banking Corporation as Arranger and Joint Lead Manager. Commonwealth Bank of Australia and National Australia Bank were Joint Lead Managers.