Twin Bridges 2020-1: 30 July 2020
The fifth Twin Bridges transaction from Paratus (all currently outstanding), which will again be a standalone issuance where the Issuer will make payments on the Notes from payments of principal and revenue received from a portfolio comprising buy-to-let mortgage loans sold by Paratus AMC Limited which were originated by the seller and secured over residential properties located in England and Wales.
The Mortgage Loans in the Provisional Mortgage Portfolio were originated by the Seller itself under two brands, Foundation Home Loans (99.79%) and Paratus/Keystone (0.21%).
As at the portfolio reference date (31 May 2020) the portfolio consisted of 1,462 buy-to-let accounts, where the average outstanding balance per account is £239,131 and the largest is for £1.649mln. All loans were subject to a full property valuation, and all are performing. Borrower type: individual 49.30%, limited company 50.70%. Redemption type: interest-only 96.15%, capital & interest 3.42% and part & part 0.43%. Loan purpose: re-mortgage 69.80%, purchase 30.20%. Product type: Fixed (Reverts to 3M Libor) 99.90%, variable 0.10%. The WA CLTV is 71.58% (OLTV was 71.62%) and the WA seasoning is 4.49 months. Regional concentration: Greater London 45.57%, South East 18.21%, Eastern 10.84% and the North West 6.92%.
Significant Investor: The Seller will, on the Closing Date, purchase 100% of the Class X1 Notes, 100% of the Class Z1 Notes and 100% of the Class Z2 Notes and will hold 100% of the Residual Certificates.
EU Risk Retention: On the Closing Date and until all the Notes other than the Class Z Notes have been redeemed in full Paratus AMC Limited, as an originator, will retain a material net economic interest of not less than 5% in the securitisation as required by Article 6 of Regulation (EU) 2017/2402, which will be satisfied by the Retention Holder subscribing for and thereafter holding an interest in the first loss tranche, represented by the retention by the Seller of the Class Z1 Notes and the Class Z2 Notes.
US Risk Retention: The transaction is not intended to involve the retention by a sponsor for purposes of compliance with the final rules promulgated under Section 15G of the Securities Exchange Act of 1934, as amended, but rather it is intended to rely on an exemption provided for in Rule 20 of the U.S. Risk Retention Rules regarding non U.S. transactions.
STS: As at the Closing Date, no notification will be submitted to ESMA 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 have been satisfied with respect to the Notes.
Compare/contrast: Twin Bridges 2019-2, Finsbury Square 2020-2 plc, Together Asset Backed Securitisation 2020-1