Non-bank prices $1bn RMBS transaction

The non-bank lender said the transaction, slated for settlement on 13 April, represented its seventh offering into the 144A USD market since 2012.

In a statement issued to the Australian Securities Exchange, the firm said the senior AAA AUD note was priced at +120 basis points (bps) over one month bank bill swap rate (BBSW), which was 10 bps lower than the equivalent note margin in Premier 2016-2 in December 2016.

“Equivalent USD note margins were also priced at tighter relativities than [our] last USD transaction, Premier 2016-1 in April 2016,” it added.

The transaction includes a capital structure with a dual-tranche USD 144A note, in pass-through and bullet format – providing investors with a choice in terms of duration and cash flow.

RESIMAC flagged “road investor interest across the entire capital structure with several new accounts participating”.

It also said the deal attracted bids from 28 investors, including 17 offshore accounts – and that the final order book was significantly oversubscribed in all rated tranches.

“This transaction is a vital component of RESIMAC’s 2017 funding task and, importantly, also allows capacity and pricing support to the group’s new business activities,” said RESIMAC joint-CEO Mary Ploughman.

“The success of the transaction can also be attributed to the strong credit profile of the collateral, the quality of our underwriting and servicing platforms and the performance of our broader portfolio where portfolio delinquencies have been outperforming the market benchmarks for a number of years,” she added.

[Related: Non-bank boss steps down following merger]