Macquarie prices US$341.6 million 144A equipment ABS transaction

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:

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.