MTF
15/07/2014 14:54
GENERAL
REL: 1454 HRS Motor Trade Finances Limited
GENERAL: MTF: Second MTF medium term note issue oversubscribed
15 July 2014
Motor Trade Finances Limited (MTF) has today issued $200m of medium term
notes to institutional investors, in its second asset backed security issue.
The original offer of $150m was heavily oversubscribed, resulting in the
offer increasing to $200m. A broad mix of offshore and domestic institutional
investors are participating in the issue.
The medium term notes are issued by Trustees Executors Ltd, in its capacity
as trustee of the MTF Valiant Trust 2014. The notes are backed by motor
vehicle receivables originated by MTF dealers and franchises, who are all MTF
shareholders, and have an aggregate expected term of up to four years.
Fitch Ratings has assigned its highest structured finance rating, AAA (sf),
to $176.4m of medium term notes. A further $18.8m of notes rated from AA
(sf) to B (sf) will be issued, with the balance of $4.8m of unrated notes
held by MTF. The ratings assigned to the notes reflect the credit quality of
MTF receivables, and the track record and industry experience of MTF.
Very little securitisation activity has appeared in New Zealand post the
global financial crisis, with only four issues coming to market in recent
years, one of which was the June 2012 issue of the MTF Zephyr Trust. The
issue of all classes of rated notes to institutional investors is a further
endorsement of the funding structure put in place in 2010 in response to the
global financial crisis by MTF, its bankers and professional advisors.
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.
MTF is pleased with the strong investor support shown for the issue and
welcomes the opportunity to broaden its investor base and provide MTF dealers
and franchises 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:00252752 For:MTF Type:GENERAL Time:2014-07-15 14:54:03
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