Pepper Group’s PRS 26 transaction was successfully priced on Wednesday 10 June, issuing a planned $700m of bonds backed by Australian mortgages.
Pepper’s PRS program comprises a mix of prime and non-conforming mortgages and is designed to optimise the funding of its asset originations.
Pepper Group’s Australian CEO, Mario Rehayem said “The success of this transaction is due mainly to the tireless work of Pepper’s treasury team who deserve recognition for their efforts. The team’s tenacity combined with the reputation of Pepper’s PRS program for quality underlying assets has produced an outstanding result for the business.
“Pepper Group also wishes to show its appreciation to the Australian Office of Financial Management (AOFM) for its willingness to participate in the transaction, despite no investment being required, and their broader support of the Australian securitisation markets.”
Commenting on the strong appetite and support from investors Andrew Twyford, Pepper’s Treasurer, said “It was very pleasing to see strong appetite across the capital stack and broad participation from a range of investors who see value in investing in Pepper’s RMBS program. With strong execution across all classes, this transaction is another example of the continuing support the Australian RMBS market is afforded from domestic and offshore bond investors.”
Pepper would also like to thank Commonwealth Bank of Australia (arranger), National Australia Bank, Westpac Banking Corporation, Macquarie Bank and Standard Chartered Bank for their work as Joint Lead Managers in distributing the various note classes.
The transaction is scheduled to settle on 18 June 2020.