Small Business Origination Loan Trust 2019-2: 21 July 2019
Following on from their earlier transactions, this is another stand-alone issuance where the Issuer will make payments on the notes from payments of principal and interest on a portfolio of loans originated through the Funding Circle Platform which will be purchased by the Issuer from CFS5 2019-1 Ltd (the Seller) on the Closing Date.
The Funding Circle is authorised and regulated by the Financial Conduct Authority and operates a marketplace lending platform focused on small businesses which allows retail and accredited investors, government bodies and institutional investors to access credit investments in pre-screened small businesses. Funding Circle operates the marketplace and so facilitates both (a) the entering into of loans and (b) the payment and collection of sums due under or in connection with those loans. Funding Circle facilitates loan applications through both direct channels and indirect or intermediary channels.
Each of the Purchased Loan Receivables in the Loan Portfolio was initially advanced by the Seller or acquired by it, in each case through the Funding Circle Platform. On the Provisional Loan Portfolio Cut-Off Date, the Provisional Loan Portfolio was comprised of 3,030 Loans advanced to 3,028 Funding Circle Borrowers and had an Aggregate Collateral Principal Balance of £234.203mln. The average collateral principal balance is £77,294 and the WA seasoning is 2.0 months. The largest obligor accounts for 0.23% of current balances and the top 10 for 2.23%. Borrower type: limited company 95.41%, sole trader or partnership 4.59%. Regional concentration: South East 23.82%, London 17.21%, the Midlands 13.46% and the North West 11.40%.
Significant Investor: Cascade 5 will, on the Closing Date, purchase at least 5% of the nominal value of each of the Class A Notes, Class B Notes, Class C Notes, Class D Notes, Class E Notes, Class X Notes and Class Z Notes.
EU Risk Retention: Cascade Funding, LP – Series 5 (the Retention Holder) as “originator” for the purposes of Article 2(3) of the Securitisation Regulation will, for the life of the Transaction, retain a material net economic interest of not less than 5% in the securitisation in accordance with Article 6 of Regulation (EU) 2017/2402. As at the Closing Date, such interest will comprise the Retention Holder holding no less than 5% of the nominal value of each class of Notes sold or transferred to investors on the Closing Date.
US Risk Retention: The Retention Holder intends to satisfy the U.S. Credit Risk Retention Requirements by acquiring and retaining an eligible vertical interest equal to a minimum of 5% of the nominal value of each Class of Notes issued by the Issuer on the Closing Date.
Compare/contrast: Small Business Origination Loan Trust 2019-1