Wisr prices $200 million ABS transaction

Wisr prices $200 million ABS transaction

ASX-list Wisr have announced the pricing of its fourth ABS transaction, the $200 million Wisr Freedom Trust 2023-1.

The transaction comprises 7 tranches, with the senior tranche (Class A) being AAA-rated by Moody’s. National Australia Bank acted as the Arranger, Dealer and Lead Manager.

The transaction will decrease Wisr’s cost of funds and increase funding capacity for the business to support future growth of the $887 million loan book (as at 30 September 2023) when market conditions are deemed appropriate to resume scaling.

Wisr Freedom Trust 2023-1 brings the total value of ABS transactions executed by the Company to $875 million. Wisr’s previous three ABS transactions were also arranged by NAB and achieved a AAA Moody’s rating for the top tranches.

Andrew Goodwin, Chief Executive Officer of Wisr, said, “We’re very pleased with the investor support for Wisr’s fourth ABS transaction – our second for 2023. The Wisr Freedom Trust 2023-1 will further diversify our funding platform, decrease our cost of funds and create $200 million of additional capacity in WH1.

“This milestone follows the $200 million Wisr Independence Trust 2023-1 in February 2023. The Company also added balance sheet strength through the sale of Freedom 2021 G1 notes in Q4FY23 and the partial sale of Freedom 2022 G1 notes in Q2FY24.

“Despite the challenging macroeconomic conditions and moderated loan volume strategy in place, the transaction reflects the debt market’s confidence in the Company, including the quality of the prime loan book along with the strong risk and operational frameworks in place.

“We’ve continued to pursue a moderated loan volume strategy while remaining focused on net interest margin expansion and profitability. This strategy will remain in place until conditions are deemed appropriate to recommence scaling,” finished Goodwin.

The transaction is due for settlement in the week commencing 11 December 2023.