Small Business Origination Loan Trust 2019-3: 30 November 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 (i) Great Trinity Lending 1 Designated Activity Company and (ii) Glencar Investments XI Designated Activity Company on the Closing Date.
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 2,973 Loans advanced to 2,970 Funding Circle borrowers and had an Aggregate Collateral Principal Balance of £250.009mln. The average collateral principal balance is £84,093 and the WA seasoning is 2.4 months. The largest obligor accounts for 0.21% of current balances and the top 10 for 2.05%. Borrower type: limited company 94.61%, sole trader or partnership 4.65% and limited liability partnership 0.75%. Regional concentration: South East 26.92%, London 18.36%, the Midlands 12.96% and the North West 10.98%.
Significant Investor: The Retention Holders will, on the Closing Date, cumulatively 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, in accordance with the risk retention requirements.
EU Risk Retention: Funding Circle Ltd and Glencar Investments XI Designated Activity Company (each a Retention Holder and, together, the Retention Holders), acting as “originators” 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.
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.
STS Securitisation: The Transaction is intended to qualify as a simple, transparent and standardised (STS) securitisation within the meaning of Article 18 of the Securitisation Regulation.
Compare/contrast: Small Business Origination Loan Trust 2019-2