Overview

MEF Trust 2012-A equipment backed securitisation issue priced

18 October 2012

Macquarie Group Limited today announced that the Macquarie Equipment Funding Trust 2012-A (“MEF 2012-A”), a securitisation of mid-ticket equipment lease receivables, priced overnight (New York time).

The US$257.67 million MEF 2012-A Rule 144A issue offered five tranches of fixed-rate securities as follows:

ClassExpected Rating
(Moody’s / Fitch)
SizeExpected Average Life (yrs)Coupon (%)Implied Margin (Benchmark)
A-1 P-1(sf) / F1+sf US$95m 0.48 0.29 -25bps (LIBOR)
A-2 Aaa(sf) / AAAsf US$90m 1.43 0.61 29bps (EDSF)
A-3 Aaa(sf) / AAAsf US$50.647m 2.52 0.85 43bps (Swap)
B A2(sf) / Asf US$15.691m 3.15 1.74 125bps (Swap)
C Baa2(sf) / BBBsf US$6.332m 3.15 2.68 220bps (Swap)

This issue is the second securitisation of equipment lease receivables from its US based subsidiary, Macquarie Equipment Finance, LLC. The MEF 2012-A issue is collateralised by US$275.3 million of equipment leases and residuals with a weighted average remaining term of 33 months and a weighted average seasoning of 10 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 Class B and Class C subordination of 8%, initial overcollateralisation of 6.40%, a 0.50% reserve account, and estimated excess spread per annum totalling 3.78%.

Credit Suisse is the Arranger of the transaction and Macquarie Capital (USA) is the joint lead manager.

The issue is due to settle on 25 October, 2012.

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 media inquiries, please contact:
Navleen Prasad
Corporate Communications
+61 2 8232 6472

For all other inquiries, please contact:
Angus Cameron
Group Treasury
+61 2 8232 9992