Hawksmoor Mortgages 2019-1 plc : 30 August 2019
The issuer will make payments on the notes from payments of principal and revenue received from a portfolio comprising mortgage loans secured over residential properties located in England, Wales, Scotland and Northern Ireland which will be purchased by the Issuer from Clearwater Seller Ltd. The seller acquired the loans pursuant to the exercise of portfolio call options pursuant to a deed poll in relation to each of the Hawksmoor Mortgages 2016-1 and Hawksmoor Mortgages 2016- 2 transactions.
At the cut-off date (15 June 2019) the portfolio comprises of 28,297 mortgage loan parts (secured on 28,270 properties) which were originated during the period from July 1987 to February 2016. The average current balance is £89,011 and the largest current loan is for £1.234 mln. Ownership Type (by current balances): Owner-occupied - 96.34%, BTL - 3.66%. Primary Borrower’s Income Verification: Verified - 69.62%, Self-Certified - 28.98%, N/A – 1.41%. Primary Borrower’s Employment Status: Employed - 66.94%, Self Employed 31.65%, N/A 1.41%. Loan Purpose: Re-mortgage - 62.63%, Purchase - 28.56%, Right to Buy - 3.19%. Repayment method (current balances): Interest Only - 64.49%, Repayment - 32.13%, Part & Part - 3.38%. Interest rate method: Floating - 99.99%, Fixed - 0.01%. Greater than 3 Months in Arrears – 6.70%. The WA original LTV was 81.11%, the WA current ILVR is 57.49% and the WA seasoning is 152.84 months. Regional concentration: North West - 13.02%, Greater London - 12.34%, Outer Metropolitan – 9.81%, Yorks & Humber - 9.04% and West Midlands - 8.96%.
Significant Investor: On the Issue Date: (i) certain funds managed and/or sub-advised by Davidson Kempner Capital Management LP will acquire the H Notes, the Z1 Notes and the Z2 Notes; (ii) the B Notes, the C Notes, the D Notes, the E Notes, the F Notes, the G Notes and the X Notes will be immediately sold by the Joint Lead Managers to, and will be purchased by, Merrill Lynch International and/or their affiliates; (iii) it is expected that the A Notes will be acquired by a single investor or related investors; (iv) the R Certificates and the S Certificates will be issued to the Seller and represent a right to deferred consideration for the sale of the Mortgage Pool by the Seller to the Issuer. The Seller will immediately following the issue of the R Certificates and the S Certificates to the Seller transfer the R Certificates to Junglinster or certain funds managed and/or sub-advised by Davidson Kemper Capital Management LP, and transfer the S Certificates to the Retention Holder.
EU Risk Retention: Credit Suisse International (the Retention Holder), as originator, will undertake that it will, on an ongoing basis, retain a material net economic interest of not less than 5% of the nominal value of each of the tranches sold or transferred to investors as required by Article 6(1) and Article 6(3)(a) of Regulation (EU) 2017/2402. At the Issue Date, the retention will comprise of the Retention Holder holding no less than 5% of the nominal value of each tranche sold or transferred to investors on the Issue Date.
US Risk Retention: The Retention Holder, acting as retaining sponsor, intends to satisfy the U.S. Credit Risk Retention Requirements by acquiring and retaining a "single vertical security" that is an eligible vertical interest in the Issuer, with an aggregate balance of approximately £126,621,000 as of the Issue Date, in the form of the VRR Loan Note.
STS: As at the Issue Date, no notification will be submitted to the European Securities and Markets Authority, 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.
Compare/contrast: Hawksmoor 16-2, Ciel No. 1 plc, Polaris 2019-1 plc