Canterbury Finance No.2 PLC: 29 March 2020
The second Canterbury transaction and another stand-alone transaction 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 OneSavings Bank plc, under its trading name of Kent Reliance, secured over residential properties located in England and Wales and sold by OSB to the Issuer on the Closing Date. The Issuer confirms that the assets backing the issue of the Notes and the Notes themselves are not part of a re-securitisation.
As at the Portfolio Reference Date (31 January 2020), the Provisional Portfolio comprised 4,345 first-ranking buy-to-let loans originated by the Seller and secured over properties located in England and Wales. All loans were subject to a full property valuation. The average current balance is £246,783 and the largest is for £1.488mln. Repayment method (by current balances): interest-only – 96.49%, repayment – 3.49%, part & part – 0.02%. Loan purpose: re-mortgage – 62.99%, purchase – 36.86%, no data – 0.15%. Interest rate type: Floating (for life) – 87.57% and Discount – 12.43%. The WA current LTV is 74.05% (original WA LTV was 74.10%) and the WA seasoning is 8.60 months. Regional distribution: Greater London – 45.75%, South East – 21.66%, the West Midlands – 7.38< and the South West – 6.55%.
Significant investor: OSB shall on the Closing Date purchase 100% of the Class A Notes, the Class B Notes, the Class C Notes, the Class D Notes, the Class E Notes, the Class F Notes and the Class X Notes. OSB has no obligation to retain the Class A Notes, Class B Notes, the Class C Notes, the Class D Notes, the Class E Notes, the Class F Notes and the Class X Notes on an on-going basis, save in respect of its risk retention obligations pursuant to Article 6 of the Securitisation Regulation.
EU Risk Retention: On the Closing Date, OSB will retain on an ongoing basis a material net economic interest of not less than 5% in the securitisation as required by Article 6(1) of Regulation (EU) 2017/2402. As at the Closing Date, such interest will comprise retention of randomly selected exposures equivalent to no less than 5% of the nominal value of the securitised exposures, where such exposures would otherwise have been securitised in the transaction affected by the Issuer, in accordance with Article 6(3)(c) 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 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.
Compare/contrast: Canterbury Finance No.1, Rochester Financing No.2