05 July 2005
Macquarie Debt Markets announced today that the FirstMac Group is launching a $600 million residential mortgage backed securitisation issue out of its FirstMac Mortgage Securitisation Programme. This is the fifth public issue out of the FirstMac Mortgage Securitisation Programme and the second issue in 2005.
Macquarie is arranger and lead manager of the transaction and Australia and New Zealand Banking Group Limited and HSBC Bank plc are co managers.
Each of Standard & Poor's ("S&P"), FitchRatings ("Fitch") and Moody's Investors Service ("Moody's") will rate the Class A1 Bonds and Class AB Bonds. The Class B Bonds will be rated by S&P and Fitch.
The structure is as follows:
|Class||Size $M||Interest Rate Option||Expected Rating (S&P/ Fitch / Moody's)||WAL (years)|
* The Class B Notes will not be rated by Moody's
As with the 1-2005 issue, the transaction has been designed as a "super senior" structure with a level of credit enhancement such that the rating of the Class A1 (super senior) notes is in excess of the amount required to protect against a one category downgrade by S&P and Fitch of both mortgage insurers and a 2 notch downgrade by Moody's of both mortgage insurers. The level of subordination provided by the Class AB and Class B Notes is 8 per cent of the total issue size. S&P's requirement for subordination to protect against a one category downgrade of both mortgage insurers was 5.4 per cent Fitch's was 4.22 per cent and Moody's requirement to protect against a 3 notch downgrade of both mortgage insurers was 5.25 per cent.
Teresa Neal, Associate Director of Macquarie Bank Debt Markets said "we are delighted to be leading the fifth public term issue from the FirstMac Mortgage Securitisation Programme. This is FirstMac's second issue this year, resulting from strong originations and shows their continued commitment to the market. We have designed the transaction as a "super senior" structure, with the Class AB Notes providing an extra level of protection to the Class A1 Notes. Investors should find the strong level of subordination for the Class A1 notes and the extra yield that will be earned on the Class AB Notes (expected to be rated AAA) particularly attractive. We therefore expect the issue to be well received."
The issue is expected to price on or around 14 July 2005 and will settle on 26 July 2005.
For further information, please contact:
Tel: (612) 8232 3844