Friary No 6 Plc: 28 November 2019
Another stand-alone issue, where the Issuer will make payments on the Notes from payments of principal and revenue on a portfolio comprising mortgage loans originated by the Principality Building Society and secured over residential properties located in England and Wales which will be purchased by the Issuer on the Closing Date and, in the case of Further Advances and Flexible Drawings, on the relevant Advance Date and Drawing Date respectively.
Eligibility criteria for inclusion (includes): all Loans were made no earlier than 26 March 2009 and on or before 31 July 2019; each Loan was originated by the Seller in the ordinary course of business and was denominated in pounds Sterling; at least one monthly payment due in respect of each Loan has been paid by the relevant Borrower as at the Cut-Off Date; no Loan is a staff loan; each Loan has been designated as a prime Loan under the Seller's Lending Criteria; no Loan is more than one monthly payment in arrears; to the best of the Seller's knowledge, no Borrower has ever filed for bankruptcy, entered into an individual voluntary arrangement or had a county court judgment entered against him on or prior to the date on which the Borrower executed the relevant Mortgage.
At the cut-off date (31 October 2019) the portfolio consisted of 5,065 accounts (5,411 sub-accounts) with an average current borrower balance of £119,826 and a maximum loan size of £499,994. Repayment type (by total balances): repayment 93.55%, interest only 5.37% and part/part 1.08%. Interest rate product: fixed rate to SVR 94.20%, discounted SVR 4.56% and SVR for life 1.25%. The WA current LTV is 65.95% (original LTV was 70.26%) and the WA seasoning is 21.93mnths. Regional concentration (by current balances): Wales 32.01%, North West 11.65%, West Midlands 11.90% and Yorkshire and the Humber 9.04%.
EU Risk Retention: Principality will undertake that it will, on an ongoing basis, retain a material net economic interest of at least 5% in the nominal value of the securitised exposures as required by Article 6(1) of Regulation (EU) 2017/2402. As at the Closing Date such interest will be comprised of an interest in the first loss tranche, in this case the Class B 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 Securities Exchange Act of 1934, as amended (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.
STS: Principality will submit a notification to the European Securities and Markets Association in accordance with Article 27 of the Securitisation Regulation confirming that the requirements of Articles 19 to 22 of the Securitisation Regulation have been satisfied with respect to the Notes. In relation to the STS Notification, Principality has been designated as the first contact point for investors and competent authorities.
Compare/contrast: Friary No.5, Albion No 4 plc, Towd Point Mortgage Funding 2019 - Granite 5 plc