Demand for Pepper’s latest residential mortgage-backed securities (RMBS) transaction surpassed A$2 billion (US$1.5 billion) including a substantial offshore bid. The deal was well underway before market volatility spiked again, but the issuer says the main driver of investor support was its long-term and ongoing offshore investor-relations campaign.
On 19 March, Pepper Group (Pepper) launched its residential mortgage-backed securities (RMBS) transaction, Pepper Residential Securities Trust No. 20 (PRS 20). The forthcoming deal has a total indicative volume of A$700 million (US$540.2 million) equivalent, including the US dollar denominated Class A1-u1 notes for US$113.5 million.
Following a round of investor meetings, Pepper confirmed on 15 March that it plans to issue a new nonconforming residential mortgage-backed securities (RMBS) deal. Price guidance has been disclosed on the top four Australian dollar denominated tranches (see table below).
On 6 March, Pepper Group (Pepper) mandated the refinancing of its Class AR-u notes from the Pepper Residential Securities Trust No. 16 residential mortgage-backed securities (RMBS) transaction. The notes have an issue size of A$124 million (US$96.2 million) and will be used to repay the US dollar denominated A1-u2 notes. Indicative price guidance for the forthcoming deal is 105 basis points area over one-month bank bills.