Twin Bridges 2018-1: 15 July 2018
The second Twin Bridges transaction from Paratus will again be a standalone issuance where the Issuer will make payments on the Notes from payments of principal and revenue received from a portfolio comprising buy-to-let mortgage loans sold by Paratus AMC Limited which were originated by the seller directly or under the lending platform established by Landbay Partners Limited with Landbay as initial lender of record, and secured over residential properties located in England and Wales.
The Mortgage Loans in the Provisional Mortgage Portfolio were originated by the Seller itself under two brands, Foundation Home Loans (76.03%) and Keystone (23.97%).
As at the portfolio reference date (31 May 2018) the portfolio consisted of 1,318 buy-to-let accounts, where the average outstanding balance per account is £219,827 and the largest is for £1mln. All loans were subject to a full property valuation, and all are performing. Borrower type: individual 61.60%, limited company 38.40%. Redemption type: interest-only 96.66%, capital & interest 3.08% and part & part 0.26%. Loan purpose: re-mortgage 62.65%, purchase 37.35%. Product type: Fixed (Reverts to 3M Libor) 99.80%, other 0.02%. The WA CLTV is 70.73% (OLTV was 70.76%) and the WA seasoning is 4.56 months. Regional concentration: Greater London 52.87%, South East 16.92%, Eastern 9.34% and North West 5.61%.
Significant Investor: The Seller will on the Closing Date purchase 100% of the Class Z1 Notes and 100% of the Class Z2 Notes and will hold 100% of the Residual Certificates.
CRR: On the Closing Date and until all the Notes other than the Class Z Notes have been redeemed in full, Paratus AMC Limited, as an originator for the purposes of the CRR, the AIFM Regulation and the Solvency II Regulation, will retain a material net economic interest of not less than 5% in the securitisation (representing downside risk and economic outlay). The retention will be satisfied by the Retention Holder subscribing for and thereafter holding an interest in the first loss tranche, represented by the retention by the Seller of the Class Z1 Notes and the Class Z2 Notes.
The transaction is not intended to involve the retention by a sponsor for purposes of compliance with the final rules promulgated under Section 15G of the Securities Exchange Act of 1934, as amended, but rather it is intended to rely on an exemption provided for in Rule 20 of the U.S. Risk Retention Rules regarding non U.S. transactions.
Compare/contrast: Twin Bridges 2017-1, Charter Mortgage Funding 2018-1, Malt Hill No.2 Plc