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Red Zed raises A$300m RMBS

31 March 2017 5:29PM
Specialist lender Red Zed Lending Solutions yesterday priced a A$300 million securitisation, the "RedZed Trust Series 2017-1". The transaction was upsized from $250 million on the back of what the company described as strong investor interest.This was RedZed's fourth such transaction since 2011.Pricing and final size for each tranche is shown below, using the one-month bank bill swap rate:•    $180.0 million Class A-1 Notes, rated AAA(sf), 145 basis points over swap;•    $61.5 million Class A-2 Notes, rated AAA(sf), priced at 195 bps over;•    $17.31 million , Class B Notes , rated AA(sf), priced at 295 bps over;•    $15.27 million, Class B Notes, rated AAA(sf), priced at 395 bps over;•    $10.8m Class D Notes rated AAA(sf), priced at 475 bps over;•    $6.78m Class E Notes), priced at 650 bps over;•    $4.14m Class F Notes, priced at 750 bps.The $4.2 million Class G notes were unrated.There were twelve investors who participated in the transaction, the vast majority comprising real money accounts (ie, institutional investors), with seven new investors involved in this deal.CBA was the arranger and was one of the joint lead managers alongside NAB (the other JLM).

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