Liberty prices $800 million non-prime RMBS issue

Liberty Financial (Liberty) today priced its A$800 million Liberty Series 2020-2 RMBS issue, its fifty-eighth term securitisation in Australia.

Given this strong investor demand across all offered tranches, the transaction was upsized from a launch volume of A$500 million to A$800 million. National Australia Bank (NBA) is the sole Arranger and a Joint Lead Manager, along with, Commonwealth Bank of Australia, Deutsche Bank, Merrill Lynch International and Westpac Banking Corporation.

The Liberty Series 2020-2 transaction comprises A$800 million of notes rated by Moody’s Investors Service and Fitch Ratings (AAA notes only).

• The A$304.0 million Class A1a notes to be rated Aaa(sf)/AAAsf, with a weighted average life of about 0.9 years, priced at a margin of [100] basis points over one month BBSW.

• The A$256.0 million Class A1b notes to be rated Aaa(sf)/AAAsf, with a weighted average life of about 2.9 years, priced at a margin of [170] basis points over one month BBSW.

• The A$160.0 million Class A2 notes to be rated Aaa(sf)/AAAsf, with a weighted average life of about 2.9 years, priced at a margin of [220] basis points over one month BBSW.

  The pricing of the Class B, C, D, E and F notes which are expected to be rated Aa1(sf), A2(sf), Baa2(sf), Ba2(sf) and B2(sf), respectively, is not disclosed.

Now is the perfect time to get ahead and put in an order with your local butcher or greengrocer for those end-of-year entertaining opportunities.

“The Liberty Series 2020-2 transaction was well received by investors demonstrating the continued strong support for transactions backed by collateral pools originated by leading issuers like Liberty Financial," said Craig Stevens, Arranger, National Australia Bank.

Peter Riedel, Chief Financial Officer at Liberty, said: “Liberty is a leader in providing households and small businesses with the freedom to choose from a wide range of products and services to meet their financial needs. We are grateful for the support investors have extended to our business.”

Liberty has a rating of “STRONG” from Standard & Poor’s for the servicing of prime and non-prime mortgages as well as for servicing auto loans and commercial mortgages. Liberty is also Australia’s only investment grade rated non-bank issuer (BBB-, outlook stable by S&P) and one of only a few lenders with an unblemished capital markets record with no ratings downgrades or charge-offs ever experienced by its securitisation program.