Press Release
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:
| 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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