Liberty Financial - Fifth auto asset backed issue priced

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Fifth auto asset backed issue priced

8 December 2011

Liberty Financial today priced its A$90 million Liberty Series 2011-1 Auto ABS issue. The Liberty Series 2011-1 Auto Trust is the fifth securitisation of Australian auto loans.

The transaction comprises notes rated by Fitch Ratings (Fitch) and Standard & Poor’s (S&P). Strong interest from investors across all offered tranches led to the deal being oversubscribed.

The $A62.9 million Class A notes to be rated AAA by both Fitch and S&P with a weighted average life of about 1.1 years, priced at a margin of +185 basis points over one month BBSW.

The pricing of the Class B, C and D notes, to be rated A, BBB+ and BB by Fitch and S&P respectively, are not disclosed. Further, the issuer has retained the A$4.1 million unrated Class E notes.

"Despite challenging market conditions, we are particularly pleased with the level of institutional investor participation across the capital structure, their willingness to support the transaction and Liberty as repeat issuer." said Lionel Koe, Director Securitisation, National Australia Bank (NAB).

NAB is the arranger and lead manager. The transaction will settle on 15 December 2011.

“Liberty has remained an active participant in the motor finance market and recently expanded its auto finance business to include dealer floorplan finance. Liberty has developed a wide motor vehicle finance offering to consumers, businesses and dealerships”, added Peter Riedel of Liberty Financial.

Liberty has a rating of “STRONG” from Standard & Poor’s for the servicing of consumer motor vehicle loans, the only such company in Australia with this distinction. Liberty’s performance record in the capital markets remains unblemished with no ratings downgrades or charge-offs ever experienced by any of its securities or programs.