The surge in activity by Australian issuers continued last week with National Australia Bank (NAB), IMB, Interstar and Resimac launching or closing deals.
NAB is self-leading a $1.4935 billion synthetic balance sheet CLO, tied to a pool of domestic and international corporate loans. Pricing is expected on Sept. 20. The transaction follows hot on the heels of ANZ Bank, due to price a A$975 million ($730.9 million) CLO through the Resonance SPV (ASR, 09/11/06).
NAB's deal, which has an expected maturity of 4.75 years, will be sold via the Southern Cross SPV. The bank tapped the facility in December 2005 with a $1.3 billion issue.
The latest issue will, through the sale of credit-linked notes, transfer the risk on a pool of 111 loans worth $1.55 million. Australian and New Zealand entities represent 64% of the total, with European, North American and Hong Kong obligors making up the remainder.
NAB will sell five tranches of notes to be issued in U.S. dollars, euros and Aussie dollars. Moody's Investors Service and Standard & Poor's have assigned triple-A ratings to the $1.355 billion and $75 million A1 and A2 series notes. The $18 billion B-class piece is rated Aa3'/'AA-'; while the $25.5 million C-notes and $20 million D-bonds are rated A3'/'BBB' and Ba1'/'BB', respectively.
Specialist mortgage originator Resimac last week held roadshows in Australia, Singapore and Europe for an A$1.4 billion-equivalent prime RMBS. Barclays Capital and Societe Generale are joint leads on the transaction - issued via the Resimac Premier Euro Trust - with Deutsche Bank as co-manager.
The three-tranche deal is backed by 5160 loans with an LTV of 75.2% and seasoning of 15.7 months. The pool is 100% insured. Pricing is expected on September 25.
Moody's and S&P rated the A1 300 million ($387 million) bonds, which have a 2.86-year expected life, triple-A. The agencies assigned the same ratings to the A2 A$400 million domestic tranche, which has a 2.79-year average life. The deal also features an A$58 million Aa2'/'AA'-rated subordinated tranche, carrying a 4.81-year average life.
Interstar Wholesale Finance last week completed an A$1.2 billion low-doc RMBS. The transaction, arranged by Barclays and Deutsche, was upsized from A$1 billion with investors keen to take up Aussie deals after a dearth of issuance in July and August.
The A$340 million A-notes and A$600 million B-series, both rated triple-A by Moody's and S&P, respectively priced at 20 and 22 basis points over the Bank Bills Swap Rate (BBSW). Additionally, the A$34 million AB tranche and A$26 million B-class bonds - rated double-A - offered spreads of 25 and 33 basis points over BBSW.
According to sources, Interstar's rival RAMS Home Loans is due to launch its own low-doc RMBS towards the end of the month.
IMB has also priced a A$500 million prime RMBS from its Illawarra facility. ABN Amro was sole lead manager. The A$487.5 million senior notes, rated triple-A by Fitch Ratings and S&P, priced at 18 over BBSW on a 2.7-year average life. Pricing was not disclosed for the A$12.5 million subordinated bonds, which have a six-year life and were rated AA' by both agencies.
According to ABN, 18 accounts bought into the deal, with 52% of the notes placing with Australian investors; 32% going to Europe and 18% selling to Asian buyers.
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