Pepper Group’s PRS 25 transaction was priced on Friday 1 November, issuing $750m of bonds back by Australian mortgages. This is Pepper’s second PRS issuance of 2019.
Pepper’s PRS program comprises a mix of prime, near prime and non-conforming mortgages and is designed to optimise the funding of its asset originations.
Pepper Group’s Australian CEO, Mario Rehayem said “I’m delighted that Pepper has been able to achieve such an impressive result during a busy period in the securitisation market. It’s a testament to our brand, our people and the underlying credit quality that we have completed this transaction with such strong investor support.”
Commenting on the strong support from investors Andrew Twyford, Pepper’s Treasurer, said “The transaction was really well supported by both our onshore and offshore institutional investor base. We are particularly excited to continue to see new investors coming into our transactions. With favourable market conditions, the strong investor attention across all tranches saw the book well covered with the opportunity to tighten pricing on a number of tranches delivered a pleasing result.”
Pepper would like to thank National Australia Bank (Arranger), Citigroup Global Markets Inc., Societe Generale S.A., Natixis Asia Limited, Commonwealth Bank of Australia and Westpac Banking Corporation for their work as Joint Lead Managers in distributing the various note classes.
The transaction settles on 7 November 2019.