Press Release

MEF Trust 2012-A equipment backed securitisation issue priced

Sydney, 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:

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Class Expected Rating
(Moody’s / Fitch)
Size Expected 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.

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