Media Finance (2019) S.r.l: 02 June 2019
After an eight year absence this will be the fifth public transaction in the Media Finance series, the last one having been issued in April 2011 (previous prospectuses available on the EuroABS website). Again, the principal source of payment of interest and of repayment of principal on the notes will be the collections and recoveries made in respect of receivables arising out of residential mortgage loan agreements entered into between Banca Popolare di Puglia e Basilicata ScpA and certain obligors.
Eligibility criteria for the portfolio (includes): have been granted exclusively by BPPB as lender; are denominated in Euro and do not contain provisions allowing conversion into any other currency; do not arise out of previous financings which have been restructured; are secured by mortgages over real estate assets located in Italy; at least one instalment is past due and has been paid; each relevant debtor is an individual and is not a public administration or a public entity.
The portfolio (as at cut-off date 28 February 2019) consists of 6,083 first economic lien loans (advanced to 6,051 debtors), where the average outstanding balance per debtor is Eur82,785 and there are currently only 24 loans of greater than Eur400,000, which represents 2.40% of current outstandings. Type of interest rate (by balance outstanding): fixed rate 52.31%, capped floating 26.14% and floating rate 21.55%. The WA current LTV is 51.81% (original LTV was 62.10%) and the WA seasoning is 6.45yrs. Regional concentration (by balance outstanding): Puglia 61.65%, Lombardy 8.06%, Lazio 6.60% and Campania 5.75%.
EU Risk Retention: BPPB, in its capacity as Originator, has undertaken that it will: (i) retain, on an on-going basis, a material net economic interest of not less than 5% in the Securitisation in accordance with option (d) of Article 6(3) of the EU Securitisation Regulation and the applicable Regulatory Technical Standards; (ii) not change the manner in which the net economic interest is held, unless expressly permitted by Article 6(3) of the EU Securitisation Regulation and the applicable Regulatory Technical Standards; (iii) procure that any change to the manner in which such retained interest is held in accordance with paragraph (ii) above will be notified to the Computation Agent to be disclosed in the Investors Report; and (iv) comply with the disclosure obligations imposed on originators under Article 7(1)(e)(iii) of the EU Securitisation Regulation and the applicable Regulatory Technical Standards.
US Risk Retention: The Originator does not intend to retain at least 5% of the credit risk of the Issuer for the purposes of 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: Media Finance Srl (2011), Fucino RMBS Srl