The firm’s 12th securitisation takes the total of bonds to $5.5 billion
Thinktank has announced that its fourth residential mortgage-backed securitisation (RMBS) issue for $750 million has successfully closed, after investor interest enabled the deal to be upsized from $500 million at launch.
The specialist commercial and residential property lender’s most recent transaction, and its 12th securitisation overall, takes the total of bonds to $5.5 billion.
“The participation of 20 institutional investors, split between Australia (58%) and offshore (42%) for this $750 million deal, illustrates continuing strong support for the company’s dual mortgage-backed wholesale funding programs amid challenging conditions,” said Thinktank CEO Jonathan Street (pictured above).
The deal received the final ratings from both Standard and Poors (S&P) and Fitch: the $600m Class A1 Notes and the $87.75m Class A2 Notes are rated AAA(sf) and the $20.25m Class B Notes, the A$16.12m Class C Notes, the $11.25m Class D Notes, the $6.75m Class E Notes, the $4.13m Class F Notes and the $3.75m Class G Notes carried S&P assigned ratings of AA(sf), A(sf), BBB(sf), BB(sf), B(sf) and NR(sf), respectively.
Pricing was fully disclosed across the structure with the Class A1 Notes being set at a margin of +1.65% above the 30-day bank bill swap rate while the Class A2 Notes tightened from initial price guidance of +2.5% to +2.4% on the back of particularly strong investor demand.
Of the total amount issued, 50% were from real money investors, while banks accounted for the balance. The transaction was 1.43x over-subscribed representing bids amounting to just under $1.1 billion. The pool of 1,003 first mortgage loans had an average size of $744,756, with 89.7% of properties were in major metropolitan areas and 11% in highly urbanised non-metro locations.
“While the continuing impacts of higher interest rates are being progressively felt throughout the economy and the demand for credit has certainly softened, our outlook for credit performance remains cautiously positive at this time and we are keen to continue our support for SME and self-employed borrowers seeking mortgage finance solutions,” Street said.
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