Pepper Money prices its third 2022 public securitisation upsizing to $700 million

Posted 13-05-2022


Today, Pepper Money Limited (Pepper Money) (ASX: PPM) priced a $700 million auto asset-backed security (ABS) transaction under the SPARKZ programme, upsizing from $600 million on the strength of investor support.

This is Pepper Money’s third public securitisation transaction for calendar year 2022 and sees Pepper Money having raised $2.2 billion in the securitisation markets this year. Funds raised under the SPARKZ 5 transaction will support the continued growth of the Asset Finance business.

Since its first origination in 2015 Pepper Money's Asset Finance business has grown to over $3.9 billion1 in assets under management, making it a leading non-bank asset financer in Australia. The portfolio comprises auto receivables and other asset types such as marine and recreational equipment, distributed via mortgage brokers, online auto brokers, commercial and consumer brokers, car dealerships and original equipment manufacturers (OEM).

Pepper Money’s CEO Mario Rehayem, said, “Our SPARKZ 5 deal demonstrates strong, ongoing investor support for our Asset Finance business. Our growth to date is testament to our unique ability to provide the market with the right financing solution for their needs, combined with market leading approval times, and leveraging our innovative, purpose-built technology and specialist capabilities. Pleasingly we continue to receive industry recognition for our asset finance product offering, including most recently being awarded the Canstar Inaugural Award for Electric Vehicle Loans.”

"This deal gives us the funding headroom for further growth building on our Quarter 1 2022 Asset Finance Originations of $700 million (up 78% compared to the prior corresponding period) and enables us to continue to deliver our mission of helping more customers succeed."

Pepper Money’s Treasurer Anthony Moir, said, “This was a positive result given market conditions and is again a testament to Pepper Money’s well-established investor relationships and exemplary track record. SPARKZ 5 represents our fifth ABS since starting in 2019, bringing our cumulative ABS raising to $3.3 billion.”

Pepper Money thanks Westpac Banking Corporation (Arranger and Joint Lead Manager), National Australia Bank Limited, BofA Securities, Royal Bank of Canada, Sydney Branch, trading as RBC Capital Markets and Societe Generale, Sydney Branch for their work as Joint Lead Managers, and MUFG Securities Americas Inc. as Co-Manager.

This is Pepper Money’s first ABS deal for 2022, and the third securitisation for the year.

The transaction will settle on 19 May 2022. The pricing details of the notes are as follows:

Note Class

A1-a

A1-x

B

C

D

E

F

G

Coupon 1M BBSW+

1.30%

1.25%

2.10%

2.40%

2.80%

460%

6.75%

N/D

1 Assets Under Management as at close 31 March 2022.

For more information please contact:

Investor relations contact

Gordon Livingstone                                                      
Reunion Capital Partners                                      
M: 0417 695 138 
glivingstone@reunioncapital.com.au

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