Liberty prices $850 million auto securitisation

Liberty Financial Pty Ltd (Liberty) today priced the A$850 million Liberty Series 2024-1 Auto ABS transaction, its eighty-first term securitisation. The Liberty Series 2024-1 Auto Trust is Liberty’s fourteenth securitisation of Australian auto loans bringing Liberty’s total auto loan securitisation issuance to A$4 billion.

Given the strong investor demand across all offered tranches, the issue was upsized from A$600 million launch size to A$850 million.

National Australia Bank (NAB) is the sole Arranger as well as a Joint Lead Manager along with BofA Securities and Deutsche Bank. The transaction comprises A$850 million of notes rated by Fitch Ratings and Moody’s Investors Service (Class A notes).

• The A$663 million Class A notes to be rated AAA(sf) by both rating agencies, with a weighted average life of about 1.6 years, priced at a margin of 120 basis points over one-month BBSW.

The Class B, C, D, E, F and G notes are expected to be rated AA(sf), A(sf), BBB+(sf), BB+(sf) BB(sf) and NR, respectively, with pricing undisclosed.

Peter Riedel, Chief Financial Officer at Liberty, said: “Liberty is a leader in providing households and small businesses with the freedom to choose from a wide range of products and services to meet their financial needs. We are grateful for the support investors have extended to our business.”

Liberty has a rating of “STRONG” from Standard & Poor’s for servicing auto loans as well as prime and non-prime residential and commercial mortgages. Liberty is also Australia’s only investment grade rated non-bank issuer (BBB outlook stable by S&P) and one of only a few lenders with an unblemished capital markets record with no ratings downgrades or charge-offs ever experienced by the Liberty securitisation program.