First Mortgage Group (FirstMac), one of Australia's largest non-bank RMBS issuers, will soon launch its seventh securitization but first to feature a non-Aussie dollar tranche. HSBC is lead manager on the deal - issued out of the FirstMac bond series vehicle - with ANZ Investment Bank and Macquarie Bank as co-managers.
Road shows kicked off last Thursday in Singapore, with the European leg - taking place in Brussels, Dublin, Frankfurt, London, Munich and Paris - scheduled for this week.
The deal is collateralized by a pool of 4,145 loans worth A$808.3 million ($574.8 million). The weighted average loan-to-value of the portfolio is 77%, with seasoning of 9.5 months. Mortgage cover is provided by Genworth and PMI Mortgage Insurance.
The transaction comprises a 500 million ($604.3 million) senior floating rate tranche, rated triple-A by all three agencies, with an expected average life of 2.76 years. An A$50.5 million domestic subordinated tranche is rated double-A for a 7.43-year expected average life.
FirstMac last tapped the market in December 2005 with a A$450 million issue led jointly by HSBC and Macquarie. That deal featured a A$395 million senior piece, rated triple-A, which paid 22 basis points over the bank bills swap rate for 2.24 years.
Given that the senior notes on the upcoming deal are euro-denominated, a more relevant benchmark is the 450 million tranche on the recent global offering by Commonwealth Bank of Australia (ASR, 03/13/06). The triple-A rated notes ended seven points over Euribor for 2.71 years. As a non-bank issuer, however, FirstMac will likely price a couple of points outside that.
Latest from CNH
Elsewhere in the island country, CNH Australia, which specializes in agricultural and construction equipment manufacturing, is due to price the latest deal from its CNH Capital Australia facility.
Societe Generale is the arranger on the A$420 million offering, which securitizes a pool of new and used agricultural and construction equipment, as well as leases, hire-purchase contracts and goods mortgages. The deal features 5,253 contracts with a weighted average loan-to-value of 70.9% and seasoning of 10.8 months.
Standard & Poor's has assigned triple-A ratings to A$367.5 million of senior notes and triple-B to the A$37.8 million subordinated piece. Additional enhancement for the senior piece is provided by an unrated A$14.7 million seller note.
The deal is the fourth securitization by CNH Australia and first since an A$500 million offering in November 2004.
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