Pepper Money prices fifth public securitisation raising in 2021 - upsized from $500 million to $750 million

Posted 11-11-2021


Pepper Money Limited (Pepper) (ASX: PPM) priced a $750 million residential mortgage-backed security transaction (PRS 31) on the 10 November 2021.

Pepper’s PRS program comprises a mix of Non-Conforming and Prime mortgages and is designed to optimise the funding of its Australian mortgage originations.

Pepper CEO Mario Rehayem said, “We continue to see strong support from both new and long-term investors in our debt capital market issuances for both our Prime and Non-Confirming.

“This deal supports the ongoing growth opportunities available to us, in particular in the underserved segments of the mortgage market where we have a strong track record and compelling customer value propositions and continue to see strong demand for our products.”

Pepper’s Treasurer Anthony Moir said, “This was a positive result given competitive market conditions and is again a testament to Pepper’s well-established investor relationships and exemplary track record of calling every term deal at the first opportunity and providing an attractive investment proposition for investors.”

Pepper thanks Westpac Banking Corporation (Arranger), Commonwealth Bank of Australia, National Australia Bank and Standard Chartered Bank for their work as Joint Lead Managers.

This is Pepper’s third Non-Conforming PRS deal for 2021, and fifth public securisation for the year bringing funding raised from public markets to $4.0 billion in 2021.

Pepper has raised in excess of $27.3 billion across 46 RMBS and ABS transactions since 2003. The transaction will settle on 18 November 2021. The pricing details of the notes are as follows:

Note Class A1-s A1-a A2 B C D E F G
Coupon 1M BBSW+ 60bps 100bps 120bps 140bps 175bps 270bps 500bps 620bps N/A

 

For more information please contact:

Investor relations contact
Catherine Buckmaster
cbuckmaster@pepper.com.au
P: +61 2 7227 3879

Media contacts
Helen Karlis                                                        
Domestique Consulting                                      
M: 0419 593 348 
helen@domestiqueconsulting.com.au

Celia Moore                                                        
Domestique Consulting                                      
M: 0432 344 069
celia@domestiqueconsulting.com.au