Alhambra SME Funding 2019-1 DAC : 23 November 2019
The Issuer will make payments on the notes from payments of principal and revenue received from a portfolio comprising senior secured or senior unsecured loans to small, medium-sized and mid-cap enterprises in Spain lent by BeSpoke Loan Funding DAC and which will be purchased by the Issuer on the Issue Date.
The BeSpoke Capital group consists of BeSpoke Capital (Ireland) Limited (BCI), BeSpoke Capital (Spain) SL (BCS) and BeSpoke Capital (London) Limited (BCL). BCI's principal activity is loan origination and loan servicing. BCI targets SMEs and mid-cap corporates with sales greater than €20mln and an expected Axesor annual probability of default of no more than 2.05%, in a low-cyclical sector. BCI currently targets companies where the leverage remains below six times EBITDA. Loan proceeds may be used for multiple purposes including capital expenditure, internationalisation, working capital needs, mergers & acquisitions, recaps and management buyouts.
As at the Provisional Portfolio Reference Date (15 November 2019) the portfolio consisted of 52 loans, advanced to 48 borrowers. The Average Current Balance per Borrower is Eur5.728mln, and the largest current balance is Eur10mln. Principal payment frequency is quarterly, and interest payments are monthly. The WA seasoning is 1.38 years. Industry concentration: Surface transport – 15%, Building & Development – 13%, Lodging & casinos – 11%, and Business equipment & services – 10%. Regional concentration: Madrid – 29%, Catalonia – 19% and Aragon – 13%.
EU Risk Retention: On the Issue Date, BeSpoke Capital (Ireland) Limited (the Retention Holder), in its capacity as an originator for the purposes of the Securitisation Regulation, will retain (either directly or through a wholly-owned affiliate) on an ongoing basis a material net economic interest of at least 5% in the securitisation in accordance with Article 6 of the Securitisation Regulation. Such interest will be comprised of an interest in the first loss tranche as required by Article 6(3)(d) of the Securitisation Regulation, holding the economic exposure to the Z2 Notes. BeSpoke Capital (London) Limited will undertake to retain an economic interest in the Z2 Notes for the life of the transaction.