zipMoney Payments Pty Limited – a wholly owned subsidiary of zipMoney Limited (Zip) – announced the launch of a A$40m class B floating rate bond issue via its securitisation warehouse zipMoney Trust 2017-1. The issue is available to wholesale investors only, paying interest of BBSW + 6.00%pa with a scheduled maturity of 10 May 2019
zipMoney Payments Pty Limited is a wholly owned subsidiary of zipMoney Limited (Zip), an ASX listed digital consumer finance business. Its bankruptcy remote securitisation vehicle, the zipMoney Trust 2017-1, is used to fund the receivables originated by Zip and has a total drawn limit of $260m. The $40m second ranking class B notes form part of this limit, together with up to $200m of first ranking class A notes, and $20m of third ranking class C notes.
Please note this transaction has not closed and is subject to typical settlement processes.
The manager, servicer and seller
zipMoney Payments Pty Limited is a wholly owned subsidiary of zipMoney Limited (Zip), an Australian publicly listed company which was incorporated in 2013, and listed on the ASX in September 2015. As at 11 May 2017, it has a market capitalisation of $165m.
Zip offers point of sale credit and digital payment services to consumers, providing integrated retail finance solutions to small, medium and enterprise merchants across various industries, both online and in store. With 3,200 merchants at the end of March 2017, Zip’s payment platform provides merchants with promotional retail finance, allowing retailers to offer a ‘buy now/ pay later’ option to consumers.
The issuer
Perpetual Trustee Company Limited as trustee for the zipMoney Trust 2017-1 (The Trust) is the issuer of the class B notes. The Trust is a bankruptcy remote special purpose receivables warehouse facility, established to purchase the receivables originated, managed and serviced by Zip.
The offer
- The class B notes are pass through asset backed securities issued by a special purpose securitisation vehicle
- As obligations of a bankruptcy remote securitisation vehicle, the class B Notes are backed by the consumer finance receivables funded by the Trust, and do not benefit from recourse to Zip, the Trustee or the class A note subscriber
- The class B notes benefit from security over the assets of the Trust and rank in priority to the class C notes; however are subordinated to the class A notes both with respect to priority of payment and the exercise of certain rights
- The notes have a scheduled maturity of 10 May 2019
- The notes will pay an initial floating rate of interest of BBSW +6.00% p.a., paid monthly in arrear
- If the notes are not redeemed at maturity, the receivables will amortise the outstanding principal, and the class B notes will pay a stepped up coupon of BBSW +7.00%
- The class B notes are not listed on an exchange or rated by a ratings agency
The preliminary information memorandum and associated research can be viewed here.*
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