Liberty Financial seals $1.25bn deal

Seventy-ninth term upsized; settles in December

Liberty Financial seals $1.25bn deal


By Mina Martin

Liberty Financial has successfully priced its 79th term securitisation, the $1.25 billion Liberty Series 2023-4 RMBS issue, marking its 51st securities-backed portfolio of residential mortgages.

In response to robust investor demand across all tranches, the transaction was upsized from the initial $750 million to A$1.25bn. The Commonwealth Bank acted as the sole arranger and joint lead manager, alongside BofA Securities, Deutsche Bank, NAB, and Westpac Banking Corporation.

The transaction includes $1.25bn of notes rated by Moody’s Investors Service and Fitch Ratings (AAA notes only).

The Class A1 notes, totaling $937.5m, are rated Aaa(sf)/AAAsf with a weighted average life of approximately 1.6 years, priced at a margin of 150 basis points over one-month BBSW.

The Class A2 notes, amounting to $220m, are rated Aaa(sf)/AAAsf with a weighted average life of about 3.3 years, priced at a margin of 195bp over one-month BBSW.

The issue also includes Class B, C, D, E, and F notes with undisclosed ratings.

The pool of residential mortgages carries a weighted average LVR of 63% and is seasoned at 16 months. The settlement for the Liberty Series 2023-4 transaction is set for Dec. 5.

Peter Riedel (pictured above), Liberty’s CFO, expressed gratitude for the investor support.

Liberty is a leader in providing households and small businesses with the freedom to choose from a wide range of products and services to meet their financial needs,” Riedel said in a media release. “We are grateful for the support investors have extended to our business.”

Liberty holds a “strong” rating from Standard & Poor’s for servicing prime and non-prime residential mortgages, commercial mortgages, and auto loans. As Australia’s only investment-grade rated non-bank issuer (BBB-, outlook positive by S&P), Liberty maintains an unblemished capital markets record with no ratings downgrades or charge-offs in its securitization program's history.

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