Latitude launches master trust transaction
Consumer finance specialist, Latitude Financial Services has announced a launch of its first Australia Credit Card Master trust transaction.
The company said the deal would utilise a master trust structure, similar to those in the UK and US, which would enable efficient issuances for this asset class.
According to Latitude, its Australia credit card transaction was also a new structure in the Australian securitisation market, upsizing from $750 million to $1 billion, with significant over-subscriptions levels of 3.2 times across the entire capital structure.
Latitude’s treasurer, Paul Varro, said that the decision was driven by high demand the company saw for new asset class.
“We are extremely pleased with the success of this inaugural issuance which we believe provides a strong platform for Latitude’s future issuance strategy,” he said.
“The significant level of investor engagement and support for Latitude’s inaugural deal, demonstrated by the high-quality mix of local and offshore investors, has ensured a successful inaugural transaction that only enhances our existing funding platform.
“The transaction has included 36 investors across Europe, US, Asia, Australia and New Zealand, emphasising a high-level of local and global interest in latitude.”
The deal’s sole arranger, Bank of America Merrill lynch, has collaborated with joint lead managers, Deutsche Bank and National Australia Bank.
Latitude, which was acquired by a private equity consortium in 2015, said it had 2.6 million existing customers operating across a range of financial services products including personal loans, credit cards, insurance, and interest-free promotional and retail offers.
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