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ISCOVER
Staff Reporter
Liberty Financial has today priced its second issue of securities.
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The issue is backed by a portfolio of the lender’s small to medium enterprises loans.
According to a company statement, Credit Suisse and Westpac were the joint arrangers for the $240 million transaction, which was recently upsized on the back of strong investor demand.
The $144 million Class A1 notes will be given a AAA rating, with a weighted average life of about one year, priced at a margin of 215 basis points over one month BBSW.
The $28 million Class A2 notes to be rated AAA, with a weighted average life of about one year, priced at a margin of 265 basis points over one month BBSW.
"We are extremely pleased to see investor participation and interest across the capital structure, which is a positive for the market and a strong endorsement of Liberty," Credit Suisse’s Will Farrant said.
The issue consists of a pool of SME mortgages with a weighted average loan-to-value ratio of approximately 63 per cent. In addition, the collateral is well seasoned at over 32 months.
The Liberty Series 2011-1 SME transaction will settle on 27 July 2011.
