Moving across the Tasman Sea to New Zealand, Bluestone Group has completed its third NZ$-denominated nonconforming RMBS. Issued through the Sapphire facility and arranged by Westpac, the NZ$241.8 million ($152.3 million) offering was placed with 20 domestic institutional investors.

The NZ$208 million senior notes, rated triple-A by Fitch Ratings and Standard & Poor's, priced at 21 basis points over the 90-day bank bill rate on a 2.3-year average life. That matched the initial guidance of 22 to 24 basis points and turned into a new benchmark for the Kiwi market.

In addition, the transaction featured five subordinated tranches; each with a 3.8-year average life and ratings ranging from double-A to single-B. Going down the curve, spreads varied from 42 to 350 basis points.

(c) 2006 Asset Securitization Report and SourceMedia, Inc. All Rights Reserved.

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