Pepper starts marketing PRS 26 RMBS deal
- Thursday, 04 June 2020
On 4 June, Pepper Group began taking indications of interest for its residential mortgage-backed securities (RMBS) deal, PRS 26. The capped A$700 million (US$482.4 million) deal is expected to launch in the week beginning 8 June. Commonwealth Bank of Australia is arranger, and joint lead manager alongside Macquarie Bank, National Australia Bank, Standard Chartered and Westpac Institutional Bank.
PRS 26 structure and initial price guidance
| Tranche | Indicative volume (A$m) | Expected rating (S/M) | Weighted-average life (no. of years) | Initial credit enhancement (per cent) | Initial price guidance (bp/1m BBSW) |
|---|---|---|---|---|---|
| A1-s | 160 | AAA/Aaa | 0.6 | 30 | 105 area |
| A1-a | 330 | AAA/Aaa | 3.1 | 30 | 180-185 area |
| A2 | 108.5 | AAA/Aaa | 3.1 | 14.5 | 240 area |
| B | 38.5 | AA/NR | 4.1 | 9 | 310 area |
| C | 21 | A/NR | 4.1 | 6 | 410 area |
| D | 15.4 | BBB/NR | 4.1 | 3.8 | 535 area |
| E | 9.1 | BB/NR | 3.9 | 2.5 | ND |
| F | 6.4 | B/NR | 2.8 | 1.6 | ND |
| G1 | 5.5 | NR/NR | ND | N/A | ND |
| G2 | 5.6 | NR/NR | ND | N/A | ND |
Source: Commonwealth Bank of Australia 4 June 2020
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