This is GMAC-RFC’s 15th transaction in the UK RMBS market, and total issuance since 1998 now exceeds ?7.8 billion. This is the second mixed collateral deal to involve prime, near-prime and non-conforming collateral and the first to involve a tranche intended to be eligible for investment under Rule 2a-7 of the US Investment Company Act of 1940.
This transaction has been divided into five publicly funded tranches. The issued notes, which have been given the highest long-term ratings by Standard & Poor’s, Moody’s Investors Service and Fitch Ratings Ltd, are equivalent to ?1.5 billion sterling, and have been issued in the following denominations:
Euros ?409,000,000
Sterling ?345,500,000
US Dollars $1,617,500,000
Stephen Hynes, Capital Markets Director at GMAC-RFC commented: “We are delighted to bring to market our largest deal under the RMAC programme. It gives investors an opportunity to see our prime and near-prime collateral together with our non-conforming loans, which we have securitised in the programme previously.”
Hynes continued: “The deal was extensively marketed across the UK, Europe and the US and we are delighted with the response from investors particularly from the 2a-7 investors in the US.”
“This transaction demonstrates our commitment to being a creator and trader of mortgage assets.”
The notes are backed by a portfolio of UK residential mortgage loans originated by GMAC-RFC. A financial guarantee is provided by AMBAC Assurance UK Ltd, which will ensure the timely payment of interest, and the ultimate payment of principal on the notes.
The issuance was lead managed by Barclays Capital and The Royal Bank of Scotland, and co-managed by HSBC, Bear Stearns, Credit Suisse First Boston, Deutsche Bank, Merrill Lynch & Co and GMAC-RFC’s broker dealer GMAC-RFC Securities Europe.
Tranches:
A1 Notes - US$1,020,000,000
A2a Notes - ?195,500,000
A2b Notes - US$597,500,000
A2c Notes – ?409,000,000
A3 Notes with A3 detachable coupons - ?150,000,000
For further information on GMAC-RFC please visit www.gmacrfc.co.uk
