Bumper NL 2020-1: 22 June 2020
The ultimate source of funds for the payment of principal and interest on the Notes will be the right of the Issuer to receive (i) Lease Collections from a portfolio of Lease Agreements between Lessees in the Netherlands and LPNL and (ii) Vehicle Realisation Proceeds from the associated Purchased Vehicles. This will be their fifth public transaction of Dutch auto assets (see Bumper 1, Bumper 6 and Bumper 9). All past transactions and investor reports can be found on the EuroABS website.
The initial portfolio (as at 31 May 2020) consists of 28,177 lease agreements. Business sector (by no. of lease agreements / percentage of discounted balance): Corporate 20,536/73.16%; SME 7,442/26.18%; Govt 199/0.67%. Product Type: Closed calculation 23,412/84.24%; Open Calculation 4,765/16.91%. The top 1 client accounts for 1.89% of discounted balances, the top 10 for 13.35% and the top 50 for 31.07%. Vehicle age: New 27,371/97.63%; Used 806/2.37%. The WA seasoning is 16.30 months. Geographic Region by discounted balance): Zuid-Holland 24.24%, Noord-Holland 23.01%, Noord-Brabant 19.32% and Utrecht 12.32%.
EU Risk Retention: LeasePlan Nederland N.V. acts as "originator" within the meaning of Article 2(3) of the Securitisation Regulation and shall retain for the life of the transaction a material net economic interest of not less than 5% in the transaction in accordance with Article 6(3)(d) of Regulation (EU 2017/2402). LeasePlan Nederland N.V. in its capacity as Subordinated Loan Provider will retain, on an ongoing basis until the earlier of the redemption of the Notes in full and the Legal Maturity Date, a first loss tranche constituted by the claim for repayment of a loan advance in an initial principal amount of EUR 116,130,000 under a subordinated loan agreement made available by LeasePlan Nederland N.V. in its capacity as Subordinated Loan Provider to the Issuer under the Subordinated Loan Agreement as of the Closing Date, so that the principal amount of the Initial Subordinated Loan Advance is at least 5% of the nominal value of the securitised exposures. As at the Closing Date the actual risk retention percentage is 18.00%.
US Risk Retention: The issuance of the Notes was not designed to comply with the U.S. Risk Retention Rules and the Seller, as the sponsor under the U.S. Risk Retention Rules, does not intend to retain 5% of the credit risk of the securitised assets for purposes of the U.S. Risk Retention Rules, but rather intends to rely on a "safe harbor" exemption for foreign related transactions under Section 20 of the U.S. Risk Retention Rules.
STS: Pursuant to Article 27(1) of the Securitisation Regulation, LeasePlan Nederland N.V. will submit an STS Notification to the European Securities and Markets Association that, in its opinion, the requirements of Articles 19 to 22 of the Securitisation Regulation have been satisfied with respect to the Notes.
Compare/contrast: Bumper 9, Bumper DE 2019-1