ANZ Media Release
For release: 13 February 2007
http://www.anz.com/aus/Corporate/About_Us/PDF/A710million_RMBS.pdf
ANZ announces A$710 million RMBS
ANZ announces FirstMac Mortgage Funding Trust Series 1-2007 Trust, a A$710 million Residential Mortgage Backed Securities transaction.
The Transaction is supported by a portfolio of prime reduced documentation loans including Low and No Doc loans.
ANZ Investment Bank (“ANZIB”) is acting as Arranger and Joint Lead Manager.
Macquarie Bank Limited (“Macquarie’) is Joint Lead Manager and HSBC Bank plc (“HSBC”) is Co-Manager.
Pricing is expected on or before 23 February 2007. Legal final maturity is February 2038 and settlement is expected 29 February 2007.
Key features of the transaction include:
• Super Senior Structure
• The Trust will issue Class A, Class AB and Class B Notes
• Weighted Average Life of the Class A and Class AB Notes is 2.5 years. The Weighted Average Life of the Class B Notes is 5 years
• Rated by Standard and Poor’s (“S&P”), Moody’s Investor Service (“Moody’s”) and Fitch Ratings Australia (“Fitch”)
• Credit support provided is higher than the credit support required by S&P, Moody’s and Fitch. This effectively removes the reliance of the Class A Notes on LMI
• Loans are originated By FirstMac Fiduciary Services Pty Ltd and HSBC Bank Australia Limited (“HSBC”)
• Call date is the earlier of 5 years or when the receivables balance is equal to or less than 20% of the Initial Invested Amount of the Notes FirstMac Limited (“FirstMac”) is a well known issuer both in Australian and offshore markets, with a dozen issues (in both A$ and Euros) approaching A$6.4 billion of total assets under management.
In December 2006, FirstMac purchased HSBC’s broker originated loan portfolio. Of the $2.2 billion portfolio acquired in December only 10% are included in Series 1-2007.
Lo Doc Loans comprise 56% and No Doc Loans 44% of the preliminary pool. The weighted Average LVR is 66.24%.
The weighted Average LVR of the Lo Doc loans is 72.65%, while the weighted average LVR of the No Doc loans is 58%.
The mortgage insurers are Genworth Financial Mortgage Insurance (74 per cent) and PMI Mortgage Insurance (26 per cent).
Structure details:
Note Tranches Final Amount Credit Enhancement Pricing
Class A (AAA/Aaa/AAA) A$610.60 m 14.00% 1M BBSW + [TBA]
Class AB (AAA/Aa1/AAA) A$74.44 m 3.5% 1M BBSW + [TBA]
Class B (AA/Aa2/AA) A $24.85 m 0.00% 1M BBSW + [TBA] A$710.00m
Marketing commences on Tuesday 13 February, with a road show to investors in Asia, Europe and Australia.