Pepper launches I-Prime 2018-1 RMBS deal

Wednesday, 23 May 2018

On 23 May, Pepper Group (Pepper) launched its residential mortgage-backed securities (RMBS) transaction, Pepper I-Prime 2018-1 Trust. The deal, expected to price on or before 25 May, has a minimum total volume of A$400 million (US$302.9 million).

Pepper I-Prime 2018-1 Trust indicative price guidance and structure:

Tranche	Indicative volume (A$m)	Expected rating (S&P)	Weighted-average life (no. of years)	Indicative price guidance (bp/1m BBSW)
A1-S	120	AAA	0.8	70 area
A1-L	200	AAA	3	120 area
A2	48	AAA	3.7	160-170 area
B	10.6	AA	3.7	180-190 area
C	8	A	3.7	270-280 area
D	5.4	BBB	3.7	370-380 area
E	3.6	BB	3.7	570-580 area
F	2.2	B	3.5	670-680 area
G	2.2	NR	4	ND

Source: National Australia Bank 23 May 2018

National Australia Bank is arranging the transaction, as well as leading alongside Commonwealth Bank of Australia and Westpac Institutional Bank.