Westpac announced pricing details yesterday for the Class A tranche of the WST 2014-2 Trust, a securitisation of the bank's own prime mortgages. The transaction was launched for A$1 billion, and has been completed for a total of $2.7 billion. The pricing details were:
- Class A: $2.48 billion, rated AAA(sf)/AAAsf (S&P/Fitch), with a spread of 75 basis points over the 1-month bank bill swap rate.
- Class B: $92 million, rated AAA(sf)/AAAsf, pricing not disclosed
- Class C $124 million, unrated, pricing not disclosed
The sole lead manager was Westpac Institutional Bank.
The WST 2014-2 Trust has run a very similar course to Westpac's first RMBS deal for 2014, which was upsized from $750 million at launch to $2.5 billion at close, with the top-rated notes priced at 78 basis points over the bank bill swap rate - not all that different from WST 2014-1 - and priced inside the RMBS from AMP, which raised $1 billion at 80 bps last week. The other comparable deal was two weeks before that, where Citi achieved 72 bps over swap for their top rated tranche
On this same tangent, Bendigo and Adelaide Bank has launched its own residential mortgage backed securitisation deal, to be known as the TORRENS Series 2014-2 Trust.
Expected ratings were assigned by Standard & Poor's to the A$552 million Class A tranche, alone. That left four other unrated classes of notes, accounting for $48 million, less than ten per cent of total issuance.