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:
(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.