Auto ABS UK Loans 2019 PLC: 27 November 2019
This will be the second public securitisation by PSA Finance UK Limited of UK-originated assets. The principal activity of PSAF is the provision of financing arrangement, predominantly finance leases, for retail and business customers for the purchase or lease of both new and used motor vehicles. PSAF also provides funding to its dealer network to purchase vehicle stock and equipment, and for capital investment projects.
The Issuer will make payments on the notes from payments received in respect of a portfolio of receivables comprising rights to amounts payable under the Underlying Agreements pursuant to which private vehicles or light commercial vehicles are financed, that will be purchased by the issuer on the initial purchase date and on any subsequent further purchase dates during the revolving period.
Receivables Eligibility Criteria (includes): is denominated in Sterling and the Customer has given an authorisation for the payment of the instalments due under the Underlying Agreement by direct debit on its bank account; has an original term to maturity of not less than six months and not more than (a) 60 months for Conditional Sale Agreements and (b) 48 months for PCP Agreements; is not a Defaulted Receivable; a minimum of one instalment has been paid by the Customer to the Seller under the related Underlying Agreement; the Balloon Payment under the Underlying Agreement is less than or equal to 65.0% of the Asset Amount Outstanding of the Receivable as at the date of its origination by the Seller.
The provisional portfolio (as at 19 November 2019) consists of 25,073 contracts, where the Average Outstanding Receivables Balance is £10,034 and the largest is for £38,576. The portfolio is highly granular, with the top 20 obligors accounting for just 0.12% of current outstanding balances. Contract Type (by number of contracts / outstanding balance): PCP New 12,851/63.34%, Conditional Sale Used 6,153/16.53%, Conditional Sale New 3,124/8.38% and PCP Used 2,945/11.75%. The WA seasoning is 9.72 months. Regional concentration (by current balances): North West 16.7%, South East 14.3% and West Midlands 11.4%.
EU Risk Retention: On the Closing Date and while any of the Notes remain outstanding, PSA Finance UK Limited (PSAF) will, as an originator, retain a material net economic interest of not less than 5% in the securitisation as required by Article 6(1) of the Securitisation Regulation. On the Closing Date and while any of the Notes remain outstanding the Retention will comprise PSAF holding the first loss tranche, namely 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, 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: As at the Closing Date, the requirements of Articles 19 to 22 of the Securitisation Regulation have been satisfied with respect to the Notes (such notification, the STS Notification).
Compare/contrast: Auto ABS UK 2017-1, Globaldrive Auto Receivables UK 2019-A