Dowson 2019-1 plc: 21 September 2019
The Issuer will make payments on the Notes and the Residual Certificates from a portfolio comprising receivables in connection with HP Agreements originated by Oodle Financial Services Limited with borrowers, and which will be purchased by the Issuer on the Closing Date. The HP Agreements provide for equal monthly payments over the term of the agreement (with the exception of the first and last payment, which may include certain fees). The Portfolio will not include PCP Contracts.
Oodle commenced origination of automotive loans in March 2016. As at 31 August 2019, Oodle has financed approximately £650 million of hire purchase receivables and, as at 31 July 2019, the assets under management by Oodle totalled approximately 55,000 vehicles. Oodle is majority-owned by funds and accounts advised or managed by KKR Credit Advisors (US) LLC and its affiliates.
At the cut-off date, the portfolio will consist of 41,298 fully amortising loans, where the average loan balance is £8,559 and the largest is £51,707. All loans were granted to individuals. Vehicle type (by current balances): used – 99.3%, new – 0.7%. Affordability Income Checks: Obviously Affordable – 82.7%, Additional Income Verification Check Performed – 17.3%. The WA seasoning is 7.24 months. Regional concentration: North West – 14.2%, West Midlands – 13.4%, South East 12.6% and London – 12.0%.
Significant investor: Oodle will, on the Closing Date, acquire 100% of the Outstanding Note Principal Amount of the Class E Notes (representing the Retention) and 100% of the Outstanding Note Principal Amount of the Class X Notes, and the Residual Certificates.
EU Risk Retention: On the Closing Date and while any of the Notes remain outstanding Oodle will, as an originator for the purposes of Regulation (EU) 2017/2402, retain a material net economic interest of not less than 5% in the securitisation as required by Article 6(1) of the Securitisation Regulation. As at the Closing Date, the Retention will comprise Oodle holding the first loss tranche, namely the Class E 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 U.S. Securities Exchange Act of 1934, 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: Bumper UK 2019-1, E-Carat plc - Series 10