FlexiGroup completes second ABS issue for the year

Finance company FlexiGroup has raised A$285 million through an issue of asset-backed securities, which was priced yesterday.

FlexiGroup will pay 50 basis points over the one-month bank bill swap rate on the $100 million A1 notes, which have a weighted average life of 0.28 years.

Pricing on the $125 million if A2 notes, which have a weighted average life of 1.34 years, was 105 bps over the swap rate.

Pricing on B notes, which have a weighted average life of 1.34 years, was 145 bps over the swap rate.

Pricing on the C, D, E and F notes was not disclosed.

Flexi ABS Trust 2015-2 is backed by a pool of more than 140,000 consumer loans originated by FlexiGroup's Certegy Ezi-Pay division. Close to half (43.1 per cent) of the loans are for solar equipment, 17.9 per cent for jewellery and four per cent for fitness equipment. The average contract size is $1976.

Commonwealth Bank was the arranger of the deal. CBA and National Australia Bank were joint lead managers.