Published 30 August 2009
The Macquarie CountryWide Trust said on Friday it had issued $A265 million of commercial mortgage-backed securities.
It issued the main offering of $A225 million at a margin of 410 basis points, and a further subordinated tranche of $A40 million.
The trust’s principal lender, National Australia Bank, arranged the issue, which both Standard & Poor’s and Fitch Ratings had assigned preliminary AAA ratings. The facility has a 3-year term with an option to repay after 2 years. The trust will use proceeds from the issue, plus cash from recent asset sales, to repay its existing $A450 million CMBS facility next in September, ahead of its original maturity date of December.
Trust chief executive Steven Sewell said: “The new CMBS issue is an important step towards the trust accomplishing its key objectives of eliminating refinancing risk and positioning the trust for the future. The strong interest received in the new programme is testament to the high quality of the properties in the trust’s portfolio.
“Upon completion & issue of the CMBS notes, the trust will be positioned with a strong balance sheet, substantially reduced refinancing requirements and an increased portfolio weighting to Australia & New Zealand.”
National Australia Bank securitisation director Satish Chand said the transaction was “a key milestone for the Australian CMBS market.”
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Attribution: Trust release, story written by Bob Dey for the Bob Dey Property Report.