Auto ABS UK Loans 2017 PLC: 15 November 2017
This will be the first public securitisation by PSA Finance UK Limited of UK-originated assets. The principal activity of PSAF is the provision of financing arrangement, predominantly finance leases, for retail and business customers for the purchase or lease of both new and used motor vehicles. PSAF also provides funding to its dealer network to purchase vehicle stock and equipment, and for capital investment projects.
The Issuer will make payments on the notes from payments received in respect of a portfolio of receivables comprising rights to amounts payable under the Underlying Agreements pursuant to which private vehicles or light commercial vehicles are financed, that will be purchased by the issuer on the initial purchase date and on any subsequent further purchase dates during the revolving period.
Receivables Eligibility Criteria (includes): is denominated in Sterling and the Customer has given an authorisation for the payment of the instalments due under the Underlying Agreement by direct debit on its bank account; has an original term to maturity of not less than six months and not more than (a) 60 months for Conditional Sale Agreements and (b) 48 months for PCP Agreements; is not a Defaulted Receivable; a minimum of one instalment has been paid by the Customer to the Seller under the related Underlying Agreement; the Balloon Payment under the Underlying Agreement is less than or equal to 65.0% of the Asset Amount Outstanding of the Receivable as at the date of its origination by the Seller.
The provisional portfolio (as at 28 September 2017) consists of 69,370 contracts, where the Average Outstanding Receivables Balance is £7,928 and the largest is for £33,305. The portfolio is highly granular, with the top 20 obligors accounting for just 0.12% of current outstanding balances. Contract Type (by number of contracts / outstanding balance): PCP New 27,682/56.06%, Conditional Sale Used 32,394/31.42%, PCP Used 5,967/9.98%, and Conditional Sale New 3,327/2.54%. The WA LTV is 95.44% and the WA seasoning is 12 months. Regional concentration (by current balances): Scotland 15.03%, North West 14.37%, South East 13.98% and West Midlands 12.68%.
CRR 405: The Seller, in its capacity as originator (the Retention Holder), undertakes that it will retain, on an ongoing basis, a material net economic interest in the transaction which shall in any event not be less than 5% of the nominal value of securitised exposures, by retaining an interest in the first loss tranche in accordance with Article 405(d) of Regulation (EU) No. 575/2013, Article 51 of Regulation (EU) No. 231/2013 and Article 254 of Commission Delegated Regulation (EU) 2015/35, by retaining the Class B Notes.
US Risk Retention: The Seller, as the sponsor under the U.S. Risk Retention Rules, does not intend to retain at least 5% of the credit risk of the securitised assets for purposes of compliance, but rather intends to rely on an exemption provided for in Section 20 of the U.S. Risk Retention Rules regarding non-U.S. transactions.
Volcker Rule: The Issuer is not, and solely after giving effect to any offering and sale of the Notes and the application of the proceeds thereof will not be, a “covered fund” for purposes of regulations adopted under Section 13 of the Bank Holding Company Act of 1956, as amended.
IMPORTANT – EEA RETAIL INVESTORS – The Notes are not intended, from 1 January 2018, to be offered, sold or otherwise made available to and, with effect from such date, should not be offered, sold or otherwise made available to any retail investor in the European Economic Area.
Compare/contrast: Auto ABS Spanish Loans 2016, Motor 2017-1, Silver Arrow S.A. Compartment UK 2017-1