Macquarie CountryWide Trust has become the first issuer to sell commercial mortgage backed securities (CMBS) since the beginning of the global financial crisis in October 2007.
In a positive sign that the local securitisation market is heading towards recovery, Macquarie will sell $265 million worth of notes in an attempt to refinance $450 million of CMBS falling due in December.
Macquarie CountryWide Trust’s chief executive officer Steven Sewell said the CMBS issue was an important step towards eliminating refinancing risk and positioning the company for the future.
"Macquarie is pleased to have this opportunity to refinance the existing CMBS facility with a new CMBS program, particularly given the current challenging market conditions. Once the issue of the new CMBS program is completed, Macquarie will be positioned with a strong balance sheet, substantially reduced refinancing obligations and an increased weighting to Australia and New Zealand," Mr Sewell said.
Macquarie’s offer will be in the form of two AAA rated tranches, with the larger tranche ($225 million) expected to price around 350 to 450 basis points over the benchmark swap rate.
According to the daily, credit markets have improved significantly over the past six months, however, pricing will remain volatile and investors are likely to keep an eye on rising default rate on CMBS in the US.
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