E-Carat PLC - Series 10: 14 February 2019
A very similar transaction to the earlier E-Carat 7, 8 and 9 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 75,930 auto contracts (new – 55,124 agreements, used – 20,806 agreements), with an average outstanding principal balance of £9,695. The maximum loan is for £47,558 and the top 20 debtors account for just 0.11% of the balances. Customer type (by outstanding principal balance): private 99.47%, corporate 0.53%. Product type: Balloon New Supported 50.31%, Standard New Supported 12.39%, Balloon New non-Supported 12.29% and Standard Used Non-Supported 11.63%. Payment method (by current balances): Direct Debit 99.69%. Geographical concentration: South East inc London 22.91%, Scotland 14.00%, the North West 13.26% and the East Midlands 9.27%. The WA seasoning is 10.23mnths.
EU Risk retention: The originator will retain for the life of the transaction a material net economic interest of not less than 5.0% in the securitisation as required by Article 6(1) of Regulation (EU) 2017/2402.
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 9, Cardiff Auto Receivables Securitisation 2018-1, Turbo Finance 8 plc