Pepper Money Limited (ASX: PPM) today priced a A$723.3 million asset backed security (ABS) transaction - SPARKZ6 - that will settle on 18 May 2023.
This is Pepper Money’s third public securitisation transaction in 2023 having raised $2.4 billion in the securitisation markets calendar year to date. Funds raised under the SPARKZ 6 transaction will support the continued growth of Pepper Money’s Asset Finance business.
Since its first origination in 2015 Pepper Money’s Asset Finance business has grown to over $5.0 billion1 in assets under management (AUM), making it a leading non-bank asset financer in Australia. The portfolio comprises car receivables and other asset types such as marine and recreational equipment, distributed via mortgage brokers, online auto brokers, commercial and consumer brokers, car dealerships and original equipment manufacturers (OEM).
Pepper Money’s CEO Mario Rehayem, said, “Our SPARKZ 6 deal demonstrates strong, ongoing investor support for our Asset Finance business, and Pepper Money as a whole. Our growth to date is testament to our unique ability to leverage our innovative, purpose-built technology and specialist capabilities to provide the market with the right financing solution for their needs, combined with market leading approval times. We continue to build out our offering and in February 2023 we moved to ‘real-time’ payments for Asset Finance. This is part of our ongoing support to our partners in delivering the best service and solution to their customers”.
“Our ability to upsize this transaction from $620 million to $723 million is very encouraging and highlights a significant improvement in credit market conditions and the strength of Pepper Money’s funding programme”
“SPARKZ 6 gives us the funding headroom for further growth building upon our strong record of year-on-year growth and enables us to continue to deliver our mission of helping people succeed. SPARKZ 6 represents our sixth ABS since starting in 2019, bringing our cumulative ABS raising to $4.0 billion.”
Pepper Money thanks National Australia Bank (Arranger and Joint Lead Manager), Bank of America Securities, RBC Capital Markets, Société Générale and Westpac Banking Corporation for their work as Joint Lead Managers, MUFG Securities Americas Inc as Co-Manager, and also KWM Melbourne who acted as Pepper Money’s legal counsel.
This is Pepper Money’s first ABS deal for 2023, and the third securitisation for the year.
The transaction will settle on 18 May 2023. The pricing details of the notes are as follows:
1 Assets Under Management as at close 31 March 2023.
For more information please contact:
Investor relations contact
Reunion Capital Partners
0417 695 138
0419 593 348
0432 344 069