E-Carat PLC - Series 9: 23 February 2018
A very similar transaction to the earlier E-Carat 7 and 8 transactions, where again the issuer will use the net proceeds from the sale of the notes to purchase from the seller a pool of retail auto loan receivables that were originated by GMAC UK plc through motor vehicle dealers.
Eligibility criteria for inclusion in the pool (includes): relates to a new car, a used car or a light commercial vehicle; has had at least one scheduled monthly payment made in respect of it by the customer; is freely transferable by the seller; is originated in the United Kingdom by GMAC UK plc; the receivables are denominated and payable in Sterling; none of the receivables is a defaulted receivable or a VT receivable; each of the receivables is due from a customer who is a UK resident.
The provisional portfolio consists of 46,504 auto contracts (new – 34,785 agreements, used – 11,719 agreements), with an average outstanding principal balance of £10,479. The maximum loan is for £39,558 and the top 20 debtors account for just 0.20% of the balances. Customer type (by outstanding principal balance): private 98.87%, corporate 1.13%. Product type: Balloon New Supported 57.33%, Standard Used Non-Supported 17.42%, Standard New Supported 9.56%. Payment method (by current balances): Direct Debit 99.69%. Geographical concentration: South East inc London 24.63%, North West 12.37%, the East Midlands 10.03% and Scotland 9.87%. The WA seasoning is 7.72mnths.
CRR/405: The originator will retain for the life of the transaction a material net economic interest of not less than 5.0% in the securitisation in accordance with the text of Article 405 of Regulation (EU) No 575/2013 and Article 51 of Regulation (EU) No 231/2013.
US Risk Retention: The Seller does not intend to retain at least 5% of the credit risk of the securitised assets for purposes of compliance with the final rules promulgated under Section 15G of the Securities Exchange Act of 1934, 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.
Compare/contrast: E-Carat PLC - Series 8, Bavarian Sky UK 1 plc, Motopark Finance Plc