Pepper Group priced a $750m non-conforming transaction (PRS29) on Wednesday 28 April.

The non-conforming transaction is Pepper’s second securitisation this year.

Pepper Group’s Australian CEO, Mario Rehayem said “The entire market is benefiting from a favourable environment right now, however, Pepper’s long-term track record and reputation in the debt capital markets is seeing new and long term investors providing overwhelming support for our paper.”

Commenting on the favourable outcome, Anthony Moir, Pepper’s Treasurer, said “I am very pleased with the outcome on this transaction. The strong interest and backing from new and existing investors in this transaction led to the offer being significantly oversubscribed, with pricing for the A1 notes at the tightest level in the market this year, when compared to similar non-conforming transactions, and the lowest since before the GFC. Our deep investor relationships and consistent transaction issuance, along with our record of having called every term deal at the first opportunity provides an attractive proposition for investors.”

Pepper wishes to thank Westpac Banking Corporation (Arranger), Commonwealth Bank of Australia, National Australia Bank and Macquarie Bank for their work as Joint Lead Managers.

Pepper’s PRS program comprises a mix of non-conforming and prime mortgages and is designed to optimise the funding of its asset originations.

The transaction is scheduled to settle on 5 May 2021.