New York, 21 February 2011
Macquarie Group Limited today announced that it has priced a US$341.6 million mid-ticket equipment ABS issued by the Macquarie Equipment Funding Trust 2011-A (“MEF 2011-A”). This issue is the inaugural securitisation of equipment lease receivables from its US based subsidiary, Macquarie Equipment Finance, LLC.
Three tranches of fixed-rate Class A notes priced as follows:
|Class||Size (US$’million)||Expected Weighted Average Life (years)||Rating
(Moody’s / Fitch)
|Coupon (%)||Implied Margin (Benchmark)|
|A-1||132.0||0.42||P-1 / F1+||0.43||0.02% (LIBOR)|
|A-2||84.0||1.50||Aaa / AAA||1.21||0.50% (EDSF)|
|A-3||68.534||2.62||Aaa / AAA||1.91||0.58% (SWAP)|
The MEF 2011-A bond issue is collateralised by US$341.6 million of equipment leases and residuals with a weighted average remaining term of 29 months and a weighted average seasoning of 13 months. The equipment is predominantly technology assets and capital equipment, leased to Fortune 1000 companies in the United States. Credit enhancement for the Class A notes is comprised of initial overcollateralisation of 16.70%, a 0.50% reserve account, and estimated excess spread per annum totalling 3.83%.
Barclays Capital is the arranger for the issue and Macquarie Capital (USA) is the joint lead manager. The issue will settle on 3 March, 2011.