IFR Asia – March 24, 2018

(sharon) #1

The A1-S, A1-a and A2 notes are rated
Aaa/AAA (Moody’s/S&P). The Bs to Fs
have AA, A, BBB, BB and B from S&P,
respectively. The A1-u1 notes are rated
P-1/A-1+ (Moody’s/S&P).
NAB was arranger on the offering, which
had an indicative issue size of A$700m, and
joint lead manager with CBA and Westpac.


› LATITUDE ABS NETS A$500M


LATITUDE FINANCE AUSTRALIA issued its third
securitisation of credit card receivables last
Thursday with a A$500m sale via Latitude
Australia Credit Card Loan Note Trust,
Series 2018-1.
The respective A$353.45m Class A1,
A$52.325m Class A2, A$28.8m Class B,
A$26.175m Class C, A$20.93m Class D and
A$18.32m Class E notes, all with 5.0-year
weighted-average lives, priced at one-
month BBSW plus 110bp, 145bp, 195bp,
225bp, 310bp and 425bp.
These levels were inside or at the tight
ends of respective initial price talk of one-
month BBSW plus 110bp–115bp, 150bp–
160bp, low 200s, mid 200s, mid 300s and
high 400s.
The A1, A2, B, C, D and E notes have
respective credit support of 32.5%, 22.5%,
17%, 12%, 8% and 4.5%. Class A1 notes of
A$200m were pre-placed.
Bank of America Merrill Lynch was sole
arranger and joint lead manager on the
issue with Deutsche Bank and NAB.
Last March, Latitude, Australia’s biggest
consumer retail finance group, sold the
country’s first master-trust securitisation
with a A$1bn credit card ABS, Credit Card
Loan Note Trust Series 2017-1.
It returned in August for a A$500m issue
through Credit Card Loan Note Trust Series
2017-2.


› LA TROBE WORKS ON RMBS


Oldest Australian non-bank lender LA TROBE
FINANCIAL has released initial price guidance
for an indicative A$500m offering of non-
conforming RMBS, La Trobe Financial
Capital Markets Trust 2017-2.
Macquarie is sole arranger and joint lead
manager with CBA, NAB, Natixis, Westpac
and HSBC on the issue, to be launched on
Monday.
Price guidance for the A$100m Class A1s
notes, with a 0.34-year weighted-average
life, is one-month BBSW plus 70bp area,
while that for the A$250m Class A1L and
A$89m Class A2 notes, both with 2.7-year
WALs, is one-month BBSW plus 120bp–
125bp and 160bp–165bp, respectively.
For the A$20m Class B, A$15.5m Class C,
A$11m Class D, A$6.5m Class E and A$4.5m
Class F notes, price talk is one-month BBSW


plus 200bp area, low 300s, low 400s, 600bp
area and 700bp area, respectively. The
transaction is completed with A$3.5m of
equity notes.
The Bs to Es have 3.7-year WALs, while
the Fs have a 2.9-year WAL.
The A1 notes have 30% credit support
and the A2s have 12.2%. The Bs to Fs have
respective support of 9.2%, 5.1%, 2.9%, 1.6%
and 0.7%.
The transaction has 13.45% of loans to
credit impaired borrowers, well under the
industry standard within the specialist
lending sector, according to the leads.
La Trobe sold its fifth and largest non-
conforming RMBS last September through
the enlarged A$520m La Trobe Financial
Capital Markets Trust 2017-2.

› VOLKSWAGEN HIRES FOR NEW DRIVER

VOLKSWAGEN FINANCIAL SERVICES has hired ANZ
and Bank of America Merrill Lynch to arrange
an update for ABS debt investors ahead
of a potential offering under the Driver
Australia ABS programme.
Volkswagen Financial Services raised
A$466m from the Driver Australia Four
Trust Auto ABS in May 2017.

EQUITY CAPITAL MARKETS


› JUPITER MINES PLANS TO LIST AGAIN

Manganese miner JUPITER MINES is returning
to the Australian Securities Exchange for
an IPO of up to A$240m (US$185m) after
delisting from the bourse in 2013.
Jupiter Mines was delisted because the
major shareholder at the time reckoned
it was undervalued. The company hopes
improving commodity prices and renewed
investor interest in the mining sector can
help its IPO this time around.
The 500m–600m secondary shares for
the planned IPO will be sold at a fixed price
of A$0.4 each. The company is expected to
have a market capitalisation of A$779m at
the time of listing.
The offer will run from March 27 to April


  1. Trading will start on April 18.
    Jupiter Mines owns projects in Australia
    and South Africa.
    Hartleys is the lead manager on the IPO.


› ANZ EXPLORES IPO FOR UDC

Australia and New Zealand Banking Group
is exploring the possibility of an IPO for
vehicle finance unit UDC, after failing to sell
it to China’s HNA Group late last year.
New Zealand-based UDC, a wholly
owned subsidiary of ANZ BANK NEW ZEALAND,
is an asset finance firm that funds plant

equipment, vehicles and machinery.
ANZ New Zealand CEO David Hisco
said last week it made sense to examine a
broad range of options, including an IPO,
for UDC’s future after the failure of the
planned sale to HNA last year.
Hisco expects it will be months before
any decision is made.
Deutsche Bank, which advised on UDC’s
failed sale to HNA, is understood to be
handling the potential IPO process.

› CROMWELL RAISES €230M FROM CB

Australia’s CROMWELL PROPERTY GROUP has
raised €230m (US$284m) from a seven-year
convertible bond.
The CB was launched with a base size
of €230m and an option for a €20m size
increase.
The CB, with an investor put after 4.4
years, was marketed at a coupon and
yield-to-put/maturity of 2.0%–2.5% and a
conversion premium of 7.5%–12.5%.
It was priced at a coupon and yield-to-
put/maturity of 2.5% and a conversion
premium of 7.5%.
The company will use the proceeds to
repurchase up to €150m of a CB due 2020.
It will also use the funds raised to repay
debts and for general corporate purposes.
Credit Suisse and Goldman Sachs were the
joint bookrunners.

CHINA


DEBT CAPITAL MARKETS


› BAIDU PAYS UP FOR DUAL-TRANCHER

Chinese internet search provider BAIDU
managed to price a US$1.5bn dual-tranche
bond on Thursady even as equity markets
took a hit from President Donald Trump’s
move to impose tariffs on Chinese imports.
The SEC-registered offering was split
into a US$1bn 3.875% 5.5-year priced
at Treasuries plus 125bp, inside initial
guidance of plus 140bp, and a US$500m
4.375% 10-year at plus 160bp, inside the
initial plus 180bp area.
Books reached a total of US$7.1bn, with
US$3.5bn going to the 5.5-year and the
remainder to the 2028s.
Fair value was based on the outstanding
2.875% 2022s, which were spotted at a
G-spread of 101bp, and the 4.125% 2025s,
estimated to be around G+137bp.
Proceeds will be used to repay a US$1bn
3.25% bond due August 6, and also meet
general corporate needs.
Free download pdf