Liberty prices its thirteenth and largest ever auto securitisation

Liberty Financial Pty Ltd (Liberty) today priced its A$900 million Liberty Series 2023-1 Auto ABS transaction, its seventy-sixth term securitisation. The Liberty Series 2023-1 Auto Trust is Liberty’s thirteenth and largest ever securitisation of Australian auto loans bringing Liberty’s total auto loan securitisation issuance to over A$3 billion.

Given the strong investor demand across all offered tranches, the issue was upsized from A$500 million launch size to A$900 million.

The National Australia Bank (NAB) is the sole Arranger as well as a Joint Lead Manager along with BofA Securities. The transaction comprises A$900 million of notes rated by Moody’s Investors Service and Fitch Ratings (Class A notes).

• The A$675 million Class A notes to be rated Aaa(sf) by both rating agencies, with a weighted average life of about 1.7 years, priced at a margin of 160 basis points over one-month BBSW.

The Class B, C, D, E and F notes are expected to be rated Aa2(sf), A2(sf), Baa2(sf), Ba2(sf) and B2(sf), 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 positive 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 its securitisation program.