This is GMAC-RFC's 16th transaction in the UK RMBS market, and total issuance since 1998 exceeds £8.3 billion. This deal is backed by 100 per cent non-conforming first lien residential mortgages.
Tranches:
A1 Notes - US$295,000,000
A2a Notes - £170,000,000
A2c Notes - €168,000,000
M1 Notes - £22,500,000
M2 Notes £20,000,000
B1 Notes - £7,500,000
This transaction has been divided into six publicly funded tranches. The issued notes, which have been given long-term ratings by Standard & Poors, Moody's Investors Service and Fitch Ratings Ltd, ranging from triple A to triple B, are equivalent to £500 million sterling, and have been issued in the following denominations:
Euros €168,000,000
Sterling £220,000,000
US Dollars $295,000,000
Stephen Hynes, Capital Markets Director at GMAC-RFC said: "We are delighted to bring to market our latest deal under the RMAC programme. It gives investors an opportunity to buy notes collateralised by our non-conforming collateral at various credit levels".
Hynes continued: "The deal was extensively marketed across the UK, Europe and the US and we are delighted with the response from investors, particularly in the mezzanine and junior tranches. This transaction demonstrates our commitment to being a creator and trader of mortgage assets."
This transaction assumes a Senior Subordinate Structure whereby the issued notes hold different credit ratings, thus the senior A notes are supported by Mezzanine and B notes with lower credit ratings. This is RFC's 5th senior subordinate transaction. The last transaction which assumed this structure was RMAC 2000-NS2 which closed in June 2000.
The issuance was lead managed by Barclays Capital and Credit Suisse First Boston and co-managed by HSBC, Bear Stearns, Royal Bank of Scotland, Deutsche Bank, Merrill Lynch & Co and GMAC-RFC's broker dealer GMAC-RFC Securities Europe.
