Ann: GENERAL: MTF: MTF $100 million medium term n

• Release Date: 15/06/12 17:52
• Summary: GENERAL: MTF: MTF $100 million medium term note issue fully subscribed
• Price Sensitive: No
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MTF
15/06/2012 15:52
GENERAL

REL: 1552 HRS Motor Trade Finances Limited

GENERAL: MTF: MTF $100 million medium term note issue fully subscribed

Motor Trade Finances Limited (MTF) has today issued $100m of medium term
notes to institutional investors, in only the second non-mortgage backed
security issue in New Zealand dollars, since the global financial crisis.

Standard & Poor's Ratings Services today assigned structured finance ratings
to two classes of note, with Class A Notes rated AAA (sf) and Class B Notes
rated AA (sf). The notes will be issued by Trustees Executors Ltd, on behalf
of the MTF Zephyr Trust 2012.  The notes are backed by motor vehicle
receivables originated by MTF dealers and franchises, who are all MTF
shareholders.

The $100m issue consists of $87.7m of AAA (sf) notes, $2.8m of AA (sf) notes,
with the balance of $9.5m of unrated notes held by MTF. The notes will be
fully subscribed, on issue.

Very little securitisation activity has appeared in New Zealand, post the
global financial crisis, with only three issues coming to market in recent
years.

Commonwealth Bank of Australia and Westpac New Zealand acted as joint
arrangers and lead managers, assisting MTF to organise and place the notes
with investors.

The ratings assigned to the notes reflect the credit and liquidity support
provided by MTF, and the track record and industry experience of MTF and its
shareholders.  The notes have an aggregate expected term of up to four years
and provide MTF with competitive, longer term funding.

Contact:

Angus Bradshaw
Managing Director
p: 03 467 7988
e: [email protected]

Glen Todd
Chief Financial Officer
p: 03 474 6370
e: [email protected]
End CA:00223913 For:MTF    Type:GENERAL    Time:2012-06-15 15:52:25