Cronus Finance DAC: 13 August 2020
The Issuer will make payments on the notes from an initial portfolio comprising of Lease Receivables and Future Claims originated by Olympic Commercial & Tourist Enterprises Single Member S.A. which will be purchased by the Issuer on the Closing Date. Additional portfolios may be purchased by the issuer during the Revolving Period (ending February 2022) in accordance with the terms described in the prospectus (available via www.euroabs.com). The Issuer confirms that the assets backing the issue of the Notes, taken together with the other arrangements to be entered into on or around the Closing Date, generally have characteristics that demonstrate capacity to produce funds to service any payments due and payable under the Notes and are not part of a re-securitisation.
Olympic Commercial & Tourist Enterprises Single Member S.A. is a societe anonyme incorporated under the laws of Greece, and its main activity is operating leasing (long-term rental and fleet management). Operating leasing covers any need for long duration rentals and management of fleets, usually with duration of up to seven years. Olympic Commercial & Tourist Enterprises Single Member S.A. is legally owned and controlled 100% by a consortium consisting of Koc Holding (60%) and Avis Budget Group (40%).
At the initial Cut-Off Date the portfolio consists of 13,135 contracts. Lessee type (by discounted balance): SMEs – 75.90%, Corp – 24.10%. Obligor concentration: Top 1 – 1.96%, top 5 – 6.68%, top 50 – 24.99%. Breakdown by industry (by discounted balance): Business Services – 16.62%, Consumer Products – 13.55%, Food and Beverage and Tobacco – 10.93%, and Retail – 10.70%. Regional concentration: Attica – 77.23% and Central Macedonia – 9.97%.
EU Risk Retention: On the Closing Date and while any of the Notes remain outstanding the Seller will, as originator for the purposes of Regulation (EU) 2017/2402, retain a material net economic interest of not less than 5% of the securitised exposures as required by Article 6(1) of the Securitisation Regulation. As at the Closing Date, the Retention will comprise the Seller holding the first loss tranche, namely the Class B Notes, until the Final Maturity Date, in an amount and manner which satisfies the requirements of Article 6(3)(d) of the Securitisation Regulation.
US Risk Retention: The issuance of the notes is not designed to comply with U.S. Risk Retention Rules other than the exemption under Section 20 of the U.S. Risk Retention Rules and no other steps have been taken by the Issuer, the Seller or the Joint Lead Managers and Arrangers or any of their affiliates or any other party to accomplish such compliance.
Compare/contrast: Autowheel Securitisation, Alpha Proodos DAC