Small Business Origination Loan Trust 2018-1: 20 May 2018
Following on from their initial transaction of 2 years earlier (prospectus and investor reports available via EuroABS), this is another stand-alone issuance where the Issuer will make payments on the notes from payments of principal and interest on a portfolio of loans advanced by P2P Global Investments PLC through the Funding Circle Platform, which will be purchased by the Issuer on the Closing Date.
The Funding Circle is authorised and regulated by the Financial Conduct Authority and operates a marketplace lending platform focused on small businesses, which allows retail and accredited investors, government bodies and institutional investors to access credit investments in pre-screened small businesses. Funding Circle operates the marketplace and so facilitates both (a) the entering into of loans and (b) the payment and collection of sums due under or in connection with those loans. Funding Circle facilitates loan applications through both direct channels and indirect or intermediary channels.
Each of the Purchased Loan Receivables in the Loan Portfolio was initially advanced by the Seller or acquired by it, in each case through the Funding Circle Platform. On the Provisional Loan Portfolio Cut-Off Date, the Provisional Loan Portfolio was comprised of 4,007 Loans to 3,928 Funding Circle Borrowers and had an Aggregate Collateral Principal Balance of £206.572mln. The average collateral principal balance is £51,552 and the WA seasoning is 8.6 months. The largest obligor accounts for 0.22% of current balances and the top 10 for 1.85%. Borrower type: limited company 92.59%, partnership (less than 4 partners) 3.13%, non-limited 3.10%, others 1.18%. Regional concentration: South East 24.16%, London 15.17%, Midlands 13.51% and the North West 12.84%.
Significant Investor: P2P Global Investments PLC will, on the Closing Date, purchase (i) at least 5% of each of the Class A Notes, Class B Notes, Class C Notes, Class D Notes and Class X Notes and (ii) 100% of the Class E Notes and the Class Z Notes.
CRR 405: P2P Global Investments PLC, as “originator” for the purposes of Article 405(1) of the CRR will, for the life of the transaction, retain a material net economic interest of not less than 5% in the securitisation in accordance with each of Article 405 of Regulation (EU) No. 575/2013, Article 51 of Regulation (EU) No 231/2013 (referred to as the Alternative Investment Fund Managers Regulation) and Article 254 of Regulation (EU) 2015/35. As at the Closing Date, such interest will comprise the Retention Holder holding no less than 5% of the nominal value of each class of notes sold or transferred to investors on the Closing Date.
Compare/contrast: Small Business Origination Loan Trust 2016-1, Marketplace Originated Consumer Assets 2017-1