Australia's St. George Bank will soon launch its second RMBS of 2006 with an A$1.7 billion ($1.2 billion) offering via its Crusade program. Barclays Capital is the appointed arranger, with St. George co-lead.
The deal, to be marketed in Australia, Europe and Asia, is backed by 10,025 loans worth A$2.05 billion, with an average LTV of 65.58% and seasoning of 17.3 months. Mortgage cover comes chiefly through PMI and SG Insurance. Low-doc loans make up 9.4% of the pool.
St. George will sell two senior tranches rated triple-A by all three international agencies: including an 400 million ($513 million) piece and A$975 million domestic tranche.
Two sub-pieces will also feature, comprising A$28.6 million of paper rated AA' by Fitch and S&P, plus an A$13.6 million AA-'/A+' tranche.
St. George tapped the market in February with an A$3 billion issue arranged by Credit Suisse and Deutsche Bank Securities. The euro piece finished eight points over Euribor for 2.96-years, while the senior domestic piece paid 14 basis points over the Bank Bills Swap Rate (BBSW) for 2.9-years (ASR, 02/27/06).
Meanwhile, Interstar Wholesale Finance has completed its second RMBS of the year through the Interstar Millennium facility. Barclays Capital and JPMorgan Securities jointly led the A$1.6 billion-equivalent global deal, upsized from A$1.38 billion.
The deal was backed by a pool of 6,908 loans, 18.25% of which are low-doc mortgages. Insurance was provided by Genworth and PMI. The deal featured $600 million of 0.92-year money market notes - rated F1+/P1/A1+ by Fitch Ratings, Moody's Investor's Service and Standard & Poor's, respectively -which priced at two points inside one month Libor. The $550 million triple-A notes offered an eight point spread for 2.96-years.
In addition, two domestic subordinated tranches with a 4.56-year average life were included. The A$34.5 million notes - rated triple-A by Fitch and S&P and Aa1 by Moody's -ended 18 points over BBSW, while theA$40.5 million of AA/Aa2/AA paper offered a 24 basis point pickup.
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