Specialist lender Pepper has settled a $500 million RMBS deal, proving there is still life in the market.
The issue was well supported by a total of 11 accounts including NABSecurities, LLC and Deutsche Bank Securities, the Commonwealth Bank of Australia and National Australia Bank.
“The transaction demonstrates that there is genuine investor demand for Australian RMBS paper from quality non-bank issuers with strong servicing and asset performance history," CEO Patrick Tuttle said.
The transaction is Pepper's first public securitisation issue utilising prime loans originated by GE Capital, which Pepper acquired in 2011.
Pepper's group treasurer Todd Lawler said the deal was completed in order to refinance a portion of the acquisition financing that was used to fund Pepper's purchase of the GE loan portfolio in 2011.
"The success of this issue is a strong endorsement of Pepper's business model, the credit quality of the underlying loan collateral and our expertise as a specialist mortgage servicer."