Friary No 5 Plc: 17 March 2019
Another stand-alone issue, where the Issuer will make payments on the Notes from payments of principal and revenue on a portfolio comprising mortgage loans originated by the Principality Building Society and secured over residential properties located in England and Wales which will be purchased by the Issuer on the closing date and, in the case of Further Advances and Flexible Drawings, on the relevant Advance Date and Drawing Date respectively.
Eligibility criteria for inclusion (includes): all Loans were made no earlier than 6 December 2005 and on or before 30 September 2018; each Loan was originated by the Seller in the ordinary course of business and was denominated in pounds Sterling; at least one monthly payment due in respect of each Loan has been paid by the relevant Borrower as at the Cut-Off Date; no Loan is a staff loan; each Loan has been designated as a prime Loan under the Seller's Lending Criteria; no Loan is more than one monthly payment in arrears; to the best of the Seller's knowledge, no Borrower had ever filed for bankruptcy, entered into an individual voluntary arrangement or had a county court judgment entered against him on or prior to the date on which the Borrower executed the relevant Mortgage.
At the cut-off date (30 November 2018) the portfolio consisted of 4,537 accounts (4,891 sub-accounts) with an average current borrower balance of £118,051 and a maximum loan size of £499,670. Repayment type (by total balances): repayment 92.00%, interest only 7.84% and part/part 0.16%. Interest rate product: fixed rate to SVR 93.45%, discounted SVR 5.84% and SVR for life 0.71%. The WA current LTV is 64.50% (original LTV was 67.68%) and the WA seasoning is 17.20mnths. Regional concentration (by current balances): Wales 29.02%, North West 13.68%, West Midlands 12.10% and the South West 8.95%.
Significant Investor: Principality will, on the Closing Date, purchase all of the Class A Notes and all of the Class B Notes.
STS: As at the Closing Date, no notification will be submitted to the European Securities and Markets Association (ESMA), in accordance with Article 27 of the Securitisation Regulation, that the requirements of Articles 19 to 22 of the Securitisation Regulation have been satisfied with respect to the Notes.
EU Risk Retention: Principality will undertake that it will, on an ongoing basis, retain a material net economic interest of at least 5% in the nominal value of the securitised exposures as required by Article 6(1) of Regulation (EU) 2017/2402. As at the Closing Date, such interest will be comprised of an interest in the first loss tranche, in this case 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 with the final rules promulgated under Section 15G of the Securities Exchange Act of 1934, as amended (the U.S. Risk Retention Rules), 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: Friary No.4, Elland RMBS 2018, Lanark Master Issuer 2019-1