Press releases
9 April 2009 - Liberty PRIME Series 2009-1 RMBS Priced
Liberty Financial today priced its $A600 million Liberty PRIME Series 2009-1 RMBS issue.
The transaction represents the ninth successful transaction completed in the financial markets since the AOFM commenced its program to purchase RMBS. AOFM participation was $A14.5 million in the Class
A1 notes, $A164.7 million in the Class A2 notes, $A283.0 million in the Class A3 notes and $A37.8
million in the Class AB notes for a total investment of $A500 million.
The Class A1, A2 and A3 tranches are super-senior tranches which benefit from more than double the subordination required to achieve a AAA-rating from both S&P and Fitch. Further, all classes of notes were rated independent of mortgage insurance.
- The $A44.5 million Class A1 notes to be rated A-1+ by S&P and F1+ by Fitch with a one year legal maturity and a weighted average life of about 0.13 years, priced at a margin of 90 basis points over one month BBSW.
- The $A200.5 million Class A2 notes to be rated AAA/AAA, with a weighted average life of about 0.92 years, priced at a margin of 120 basis points over one month BBSW.
- The $A283.0 million Class A3 notes to be rated AAA/AAA, with a weighted average life of about 3.22 years, priced at a margin of 140 basis points over one month BBSW.
- The $A37.8 million Class AB notes to be rated AAA/AAA, with a weighted average life of about 4.02 years, priced at a margin of 165 basis points over one month BBSW.
The pricing of the Class B, C, D and E notes to be rated AA/AA, A/A, BBB/BBB, BB/BB, respectively, are not disclosed. Further, the issuer has retained the $6 million unrated Class F notes.
The issue is collateralised by a pool of prime residential mortgage loans with a weighted average loanto-value ratio of 68.8%. In addition, about 17% of the pool is comprised of loans paying interest-only then amortising.
National Australia Bank is the arranger and joint lead manager with Credit Suisse and Deutsche Bank for the transaction, which will settle on 20 April 2009.
“Liberty is well positioned to continue providing meaningful competition in the home loan market. Our disciplined practices and prudent capital management is reflected in our portfolio performance and conservative issuance structure. We are grateful that the AOFM and investors have recognised our differentiated approach and thank them for their support” said Sherman Ma, Liberty Financial.
Liberty Financial is one of Australasia's leading specialty finance groups. Its businesses include residential and commercial mortgages, motor vehicle, dealer floorplan, debtor and equipment finance in Australia and New Zealand. It employs approximately 200 professionals and has issued more than $10 billion in domestic and international capital markets. Since 1997, Liberty has helped more than 120,000 customers achieve their financial goals.
To organise an interview or for more information, please contact:
Rebecca Sims, Communications Advisor, Liberty Financial
Email rsims@liberty.com.au
