Dowson 2020-1 plc: 26 March 2020
The second public securitisation from Oodle, where the Issuer will make payments on the Notes and the Residual Certificates from a portfolio comprising receivables in connection with HP Agreements originated by Oodle Financial Services Limited with borrowers, and which will be purchased by the Issuer on the Closing Date. The HP Agreements provide for equal monthly payments over the term of the agreement (with the exception of the first and last payment, which may include certain fees). The Portfolio will not include PCP Contracts.
At the cut-off date, the portfolio will consist of 25,122 fully amortising HP loans, where the average loan balance is £8,758 and the largest is £90,068. All loans were granted to individuals. Vehicle type (by current balances): used – 99.2%, new – 0.8%. The WA seasoning is 5.31 months. Regional concentration: North West – 13.9%, London – 12.2%, South East 12.1% and the West Midlands – 11.8%.
Significant investor: Oodle will, on the Closing Date, acquire 100% of the nominal value of the Class X Notes and 100% of the Residual Certificates. Oodle is free to deal with the Class X Notes and the Residual Certificates in its sole discretion. Citigroup Markets Limited, as a purchaser from the Lead Manager, may or may not acquire (and initially hold) 95% of each Class of Collateralised Notes on the Closing Date. CGML is free to deal with such Collateralised Notes in its sole discretion.
EU Risk Retention: On the Closing Date and while any of the Notes remain outstanding Oodle will, as an originator for the purposes of Regulation (EU) 2017/2402, retain a material net economic interest of not less than 5% in the securitisation as required by Article 6(1) of the Securitisation Regulation. As at the Closing Date, the Retention will comprise Oodle holding no less than a material net economic interest of at least 5% of the nominal value of each of the Class A Notes, the Class B Notes, the Class C Notes, the Class D Notes and the Class E Notes, in accordance with Article 6(3)(a) of the Securitisation Regulation.
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 with the final rules promulgated under Section 15G of the U.S. Securities Exchange Act of 1934, 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.
Compare/contrast: Dowson 2019-1, E-Carat plc - Series 11, Orbita Funding 2020-1 plc