Overview

Macquarie prices US$341.6 million 144A equipment ABS transaction

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.

About Macquarie Equipment Finance, LLC
Macquarie Equipment Finance (“MEF”), is one of the largest independent equipment lessors in North America, and provides lease financing, asset management solutions, and remarketing of technology, healthcare, and capital equipment to corporate customers. Originally established in 1987, the MEF business formerly operated as CIT Systems Leasing, and was acquired in December 2007 by Macquarie Group.  MEF is headquartered in Bloomfield Hills, Michigan.

For inquiries please contact

Adrian Bentley, Group Treasury 
Macquarie Group                                                    (+61 2) 8232 8584

Paula Hannaford, Corporate Communications
and Investor Relations
Macquarie Group                                                    (+61 2) 8232 4102