Burlington Mortgages No.1 DAC: 18 March 2020
A standalone issuance, where the Issuer will make payments on the Notes from payments of principal and revenue received from a portfolio comprising mortgage loans and their related security originated by EBS and Haven, and secured over residential properties located in Ireland and sold by the Sellers to the Issuer on the Closing Date. Each Seller and the Issuer confirms that the assets backing the issue of the Notes and the Notes are not part of a re-securitisation.
EBS, together with its consolidated subsidiaries from time to time, including Haven (the "EBS Group"), had consolidated total assets of €11.9 billion as at 31 December 2018. EBS has a countrywide network of 70 outlets, 58 tied branch agencies and 12 tied agencies in Ireland. EBS also has a direct telephone-based distribution division, EBS Direct. EBS offers residential mortgages and savings products, together with life and property insurance on an agency basis.
In December 2007 EBS established Haven, a wholly owned subsidiary focused on mortgage distribution through the intermediary market which, prior to 2005, had not been part of its target market. Haven is a separate entity from EBS and the Issuer with its own board of directors. Haven's total assets, as at 31 December 2018, were €2.2 billion, of which loans and further advances to customers were €2.1 billion.
As at the Portfolio Reference Date (29 February 2020), the EBS Portfolio comprised of 17,797 loans originated by the EBS Seller between 3 January 2001 and 1 November 2019 and secured over properties located in Ireland, and the Haven Portfolio comprised of 7,624 loans originated by the Haven Seller between 5 February 2008 and 1 November 2019 and secured over properties located in Ireland.
Overall, there are 25,421 fully verified owner-occupier accounts with an average current balance of Eur158,392 and a maximum balance of Eur1.975mln. All loans have been advanced on repayment terms. There are no interest-only loans in the portfolio. Loan purpose: purchase – 86.83%, re-mortgage – 9.70%, other – 3.47%. Interest rate type: Floating – 54.34%, Fixed reverting to Floating – 45.66%. Additional information: First-time buyers – 59.59%, self-employed borrowers – 2.31%. The WA current LTV is 68.03% (original LTV was 78.45%) and the WA seasoning is 65.19 months. Regional distribution: Dublin – 45.42%, Cork – 9.31% and Kildare – 7.55%.
Significant investor: EBS will, on the Closing Date, acquire 65.07% of the initial principal amount of the Collateralised Notes and 100% of each of the Class R1A Notes and the R2A Notes. Haven will, on the Closing Date, acquire 34.93% of the initial principal amount of the Collateralised Notes and 100% of each of the Class R1B Notes and the Class R2B Notes.
EU Risk Retention: On and from the Closing Date each Seller will, as an originator for the purposes of the Securitisation Regulation, retain on an ongoing basis a material net economic interest of not less than 5% in the securitisation in accordance with the text of Article 6(3)(a) of Regulation (EU) 2017/2042 of the European Parliament. On the Closing Date, such interest will be comprised of each Seller holding no less than 5% of the nominal value of each Class of Notes (other than the Class R Notes) and the Subordinated Loan sold or transferred to investors on the Closing Date, as required by Article 6(3)(a) of the Securitisation Regulation. The Retention Holders shall hold the Retention on a pro rata basis to the proportion of the securitised exposures for which each Seller is the originator as at the Closing Date.
US Risk Retention: The Retention Holders are to rely on an exemption provided for in Section 20 of the U.S. Risk Retention Rules regarding non-U.S. transactions that meet certain requirements.
STS: Within 15 Business Days of the Issue Date, it is intended that a notification will be submitted to ESMA and the Central Bank by EBS, as the originator, in accordance with Article 27 of the Securitisation Regulation, confirming that the requirements of Article 18 and Articles 19 to 22 of the Securitisation Regulation for designation as STS securitisation have been satisfied with respect to the Notes.
Compare/contrast: Dilosk RMBS No.2, Finance Ireland RMBS No.1