Resimac securitises RHG loans

Mortgage finance specialist Resimac has securitised a portion of the A$2 billion portfolio of loans it acquired from RHG early this year.

The transaction, Resimac Avoca 2014-1, is the first under the Avoca program, which was set up to refinance the debt facilities used to purchase the RHG assets.

Resimac raised $500 million through the issue, including $437.5 million of A1 notes, which have a weighted average life of 2.6 years and were priced at 92 basis points over the one-month bank bill swap rate.

An unusual feature of the deal was that all the A1 notes went to one investor.

An investment manager at Realm Investment House, Rob Camilleri, said it was not unusual for an issuer making the first issue under a new program to look for a single investor or to arrange a private placement.

"It sets up the return they are looking for though this program," Camilleri said.

The $20 million of A2 notes, which have a weighted average life of 2.6 years, were priced at 105 bps over the swap rate.

Pricing on the $22.5 million of AB notes, which have a weighted average life of 4.4 years, was 165 bps over the swap rate. Pricing on the $17.5 million of B1 notes, which have a weighted average life of 4.4 years, was 275 bps over the swap rate.

Pricing on the $2.5 million of B2 notes was not disclosed.