Liberty prices its ninth and largest asset backed issue

Liberty Financial (Liberty) today priced its A$300 million Liberty Series 2017-1 Auto ABS issue, its forty-second public term securitisation in Australia. This takes Liberty’s calendar year funding in all formats to approximately A$5.0 billion. The Liberty Series 2015-1 Auto Trust is Liberty’s ninth and largest securitisation of Australian auto loans issued by Liberty bringing Liberty’s total auto loan securitisations to over A$1.3 billion. National Australia Bank (NAB) is the sole Arranger and Joint Lead Manager along with Deutsche Bank.

The Liberty Series 2017-1 Auto transaction comprises A$300 million of notes rated by Moody’s Investors Service. The transaction attracted strong interest from investors across all offered tranches which led to the deal being approximately two times oversubscribed.

  • The A$34.0 million Class A1 notes to be rated Aaa(sf), with a weighted average life of about 0.2 years, priced at a margin of 65 basis points over one month BBSW.
  • The A$161.0 million Class A2 notes to be rated Aaa(sf), with a weighted average life of about 1.9 years, priced at a margin of 105 basis points over one month BBSW.

The pricing of the Class B, C, D, E and F notes are expected to be rated Aa1(sf), A1(sf), Baa1(sf), Ba1(sf) and Ba2(sf), respectively, and their pricing is not disclosed.

"NAB are extremely pleased with the level of institutional investor participation across the capital structure and their willingness to support the transaction. The success of this transaction confirms Liberty is a leading and trusted non-bank benchmark issuer of asset backed securities in the Australian market," Craig Stevens, Director Securitisation NAB, said.

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.

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