Limes Funding (Compartment 2019-1): 20 July 2019
The notes are backed by a portfolio of lease receivables claims which will be purchased by the Issuer from Deutsche Leasing Sparkassen AG & Co. KG (the Seller) on the closing date and which are secured by, among other things, security interests in certain objects located in Germany, and which are leased to the customers under lease agreements and hire purchase agreements relating to the purchased receivables.
At the cut-off date (24 June 2019) the portfolio will consist of 19,466 lease contracts, sub-divided into 15,210 lessees and 14,867 lessee groups. The average balance per contract is Eur38,528, per lessee Eur49,309, and per lessee group Eur50,447. Lease type (by outstanding principal): HP – 60.36%, Leasing – 39.64%. Asset type: vehicles – 27.04%, construction machinery – 26.65%, other equipment – 46.31%. All contracts are paid by direct debit and are monthly payment. The WA seasoning is 17.08 months. Regional concentration: Nordrhein-Westfalen – 19.35%, Bayern – 13.09%, Baden-Württemberg – 12.66% and Niedersachsen – 10.87%.
EU Risk Retention: Deutsche Leasing Sparkassen AG & Co. KG - in its capacity as "originator" within the meaning of the Securitisation Regulation - will retain for the life of the Transaction a material net economic interest of not less than 5% in the Transaction in accordance with Article 6 paragraph (3)(d) of the Securitisation Regulation. Deutsche Leasing Sparkassen AG & Co. KG will (i) retain, on an ongoing basis until the earlier of the redemption of the Class A Notes in full and the Final Maturity Date, the Class B Notes, in its capacity as Class B Note Purchaser, and (ii) retain, in its capacity as Subordinated Lender, on an ongoing basis until the earlier of the redemption of the Class A Notes in full and the Final Maturity Date, a first loss tranche constituted by the claim for repayment of a loan advance in an initial principal amount of EUR 3,750,000 (the Subordinated Loan) made available by the Subordinated Lender to the Issuer under the Subordinated Loan Agreement as of the Closing Date so that the sum of the aggregate principal amount of the Class B Notes and the principal amount of the Subordinated Loan is equal to at least 5% of the nominal amount of the "securitised exposures".
US Risk Retention: The Seller and the Issuer agreed that the issuance of the Class A Notes was not designed to comply with the U.S. Risk Retention Rules and that the Seller does not intend to retain at least 5% of the securitised assets for purposes of compliance with the U.S. Risk Retention Rules, but rather intends to rely on a safe harbour provided for in Rule 20 of the U.S. Risk Retention Rules regarding certain non-U.S. related transactions.
Compare/contrast: abc SME Lease Germany (Compartment 5)