Yellow Brick Road has some rare good news to report, with the announcement that it has entered into two separate term sheets relating to the establishment of a new securitisation initiative.Last September, the company said it was in negotiations to establish a A$300 million warehouse facility and launch a securitisation program.Now it has entered into what it describes as two "non-binding but detailed" term sheets, which will fund initial working capital requirements for the project and the initial $6 million subordinated first loss C note required for the warehouse.One term sheet is with an unnamed "alternative asset manager" that is taking a 50 per cent equity interest in Resi Wholesale Funding - the intended trust manager and sponsor of the securitisation businesses. The other 50 per cent is held by Yellow Brick Road.The equity stake is worth $18 million and there is also a facility for $64 million of future funding for C notes and B notes for the warehouse.The other term sheet is with "a private Australian counterparty" that will provide, among other things, a back-up facility for another $20 million of funding for C notes.Each term sheet is subject to the completion of due diligence.