Pepper launches PRS 23 RMBS deal

On 19 February, Pepper Group (Pepper) launched its capped A$750 million (US$534.6 million) equivalent residential mortgage-backed securities (RMBS) transaction, PRS 23. The deal includes a US dollar denominated tranche as well as a euro denominated tranche backed by green mortgages. Pricing is expected on or around 21 February.

PRS 23 indicative price guidance and structure

TrancheIndicative volume (m)Expected ratings (S/M)Weighted-average life (no. of years)Indicative price guidance (bp area)
A1-u US$190 AAA/Aaa 1.5 ND/1m US Libor
A1-a A$100 AAA/Aaa 2.4 145-150/1m BBSW
A1-G€ €100 AAA/Aaa 2.5 125/3m EURIBOR
A2 A$109 AAA/Aaa 3.9 225-230/1m BBSW
B A$52 AA/NR 3.9 255-260/1m BBSW
C A$22 A/NR 3.9 330/1m BBSW
D A$16 BBB/NR 3.9 430/1m BBSW
E A$9 BB/NR 3.7 630/1m BBSW
F A$8 B/NR 2.7 750/1m BBSW
G A$9 NR/NR 5 ND

Source: Westpac Insititutional Bank 19 February 2019

The Class C, D, E and F notes are no longer available for sale. Westpac Institutional Bank is arranger for the transaction, and joint lead manager for the Australian dollar denominated tranches alongside Commonwealth Bank of Australia and National Australia Bank. Citi is sole lead manager for the US dollar denominated tranche, while Societe Generale and Standard Chartered are joint lead managers for the euro denominated tranche.