Orbita Funding 2020-1 Plc: 20 February 2020
After a gap of over two years the Orbita name re-surfaces with another standalone transaction, where again the issuer will make payments on the notes from a portfolio comprising of receivables under or in connection with Conditional Sale Contracts and Hire Purchase Contracts (including PCP Contracts) originated by Close Brothers Limited.
The provisional portfolio comprises of 54,431contracts, where the average current outstanding principal balance is £6,484 and the largest is for £75,919. The APR ranges from 2.50% - 30.00%. The WA original term is 51.60 months and the WA remaining term is 36.88 months. Distribution by type of Contract (by current balance): Used car – 69.82%, Used LCV 20.45%, new LCV – 4.17%, others – 5.56%. Distribution by Product: Conditional Sale/ Hire Purchase – 83.55%, PCP – 16.45%. Customer Type: individual – 85.98%, corporate – 14.02%. Regional concentration: South East – 13.20%, London – 10.12%, the North West – 10.02% and the East of England – 9.90%.
EU Risk Retention: The Seller will retain for the life of the transaction a material net economic interest of not less than 5% in the nominal value of the securitisation, as required by Article 6(1) of the Securitisation Regulation, until the Final Redemption Date. Such interest will be comprised of an interest in the first loss tranche in accordance with Article 6(3)(d) of the Securitisation Regulation.
US Risk Retention: The Seller 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, 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: The Seller, as originator, will, on or about the date of the Prospectus, procure a notification to be submitted to ESMA, in accordance with Article 27 of the Securitisation Regulation, and the FCA, that the requirements of Articles 19 to 22 of the Securitisation Regulation have been satisfied with respect to the Notes.
Compare/contrast: Orbita Funding 2017-1 plc, Cardiff Auto Receivables Securitisation 2019-1, Marketplace Originated Consumer Assets 2019-1