Brighten taking indications of interest for Solaris RMBS transaction

Friday, 09 April 2021

Late in the day on 8 April, Brighten Home Loans began taking indications of interest for its residential mortgage-backed securities (RMBS) deal, Solaris 2021-1. The transaction is backed by prime Australian resident and nonresident loans, and is expected to launch as early as the week beginning 12 April with indicative volume of A$261.78 million (US$200.3 million). The deal has potential to upsize. Credit Suisse, Natixis and Standard Chartered are joint lead managers.

Solaris 2021-1 indicative price guidance and structure

Tranche	Indicative volume (A$m)	Available volume (A$m)	Expected rating (S&P)	Initial credit enhancement (per cent)	Weighted-average life (years)	Initial price guidance (bp/1m BBSW)
A-S	39.28	28.28	AAA	50.21	0.5	70-80 area
A-L	91.07	62.07	AAA	50.21	2.4	150-160 area
B	35.8	20.84	AA	36.52	3.1	low-mid 200s
C	36.07	21.07	A	22.74	3.1	low-mid 300s
D	25.97	14.97	BBB	12.82	3.1	low-mid 400s
E	19.63	12.63	BB	5.32	3.1	700 area
F1	6.96	ND	NR	2.66	3.1	ND
F2	6.96	ND	NR	N/A	3.1	ND

Source: Credit Suisse 8 April 2021