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The firm’s CEO called the achievement a “real milestone”
A leading alternative lender has banked its largest ever securitisation following significant efforts to broaden its investor base.
Pepper Group priced its first $1 billion RMBS issue after Pepper Residential Securities Trust No 20 (PRS20) attracted an over-subscription in excess of $2 billion.
“As our first billion dollar securitisation, this is a real milestone for everyone at Pepper,” said Australia CEO Mario Rehayem. “This transaction is a strong endorsement of Pepper’s business, its loan quality and expertise as a lender to the many customers who are underserved by the banks.”
According to Pepper, the deal’s financing strategy resulted in an “efficient overall cost of funds” for the transaction, securing competitive pricing despite market volatility.
“The efforts we have made to broaden our investor base have paid off with new investors across every tranche and an ever increasing offshore investor presence evident in this transaction,” said Pepper’s Australian treasurer, Matthew O’Hare.
“Importantly, we have attracted a significant number of new ‘real money’ investors further diversifying our investor base,” he continued. “We are truly delighted with the support shown by our many valued Australian and offshore clients and with the addition of four new investors to our program.”
The Australian tranches priced at or inside the equivalent PRS 19 tranches from October 2018, and among the tranches were senior US dollar notes of $150 million, senior AUD notes of $205 million and $300 million of "pass through" notes.
