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On 1 May, FlexiGroup launched its asset-backed securities (ABS) transaction, Flexi ABS Trust 2018-1, for an indicative A$300 million (US$226 million). KangaNews understands the structure includes two green tranches, Class A2-G and Class B-G notes, which have a combined indicative volume of A$81.3 million.
Flexi ABS 2018-1 indicative price guidance and structure
Tranche | Indicative volume (A$m) | Expected rating (Moody's/Fitch) | Credit enhancement (per cent) | Weighted-average life (no. of years) | Indicative price guidance (bp/1m BBSW) |
---|---|---|---|---|---|
A1 | 100 | P-1/F1+ | 22.5 | 0.3 | 65-70 area |
A2 | 66.5 | Aaa/AAA | 22.5 | 1.5 | 110-115 area |
A2-G | 66 | Aaa/AAA | 22.5 | 1.5 | 110-115 area |
B-G | 15.3 | Aa2/AA | 17.4 | 1.6 | 170-180 area |
C | 17.7 | A2/A | 11.5 | 1.6 | 200-210 area |
D | 12 | Baa2/BBB | 7.5 | 1.6 | 290-300 area |
E | 7.5 | Ba1/BB+ | 5 | 1.6 | 500-510 area |
F | 15 | NR/NR | N/A | 1.6 | ND |
Source: National Australia Bank 1 May 2018
Pricing is expected on or before 4 May, according National Australia Bank which is arranging the transaction and leading alongside Commonwealth Bank of Australia.
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