Silver Arrow France 2020-1: 13 November 2020
Another Silver Arrow transaction, where again the auto loan receivables secured by certain passenger cars and/or commercial vehicles and certain other collateral have all been originated by Mercedes-Benz Bank AG.
The purpose of the Issuer is to purchase on the Purchase Date (being the Issue Date) from Mercedes-Benz Financial Services France (the Seller) a portfolio of (i) French auto lease receivables arising from, or in connection with, lease agreements and (ii) French auto loan receivables arising from loan agreements relating to certain passenger cars and/or commercial vehicles, used or new.
Eligibility criteria for inclusion in the pool (include): the loan receivable has been originated by the seller; each receivable has been originated in France for the sale of a financed vehicle in the ordinary course of the seller's business and none of the obligors is an affiliate of Mercedes-Benz Bank AG; the Obligor is not insolvent; the title to each vehicle is held by the seller; each loan receivable has an original term of no longer than 96 months; each loan receivable has a seasoning above or equal to one month; each obligor is a resident of France; no loan receivable is delinquent or defaulted; the monthly instalments are paid by direct debit; the brand of the respective financed vehicle is either a Mercedes or a Smart.
At the cut-off date (30 April 2020) the portfolio of 29,645 fixed-rate contracts that have been advanced to 28,507 obligors. Contract type (by number of loans / % outstanding balance): Lease - 24.910/92.80%, Loan – 4,735/7.20%. The average outstanding principal per borrower is Eur24,194. Client type (by outstanding principal): retail small business – 51.07%, retail private – 48.93%. Vehicle type (by outstanding loan principal): new - 87.55%, used - 12.45%. Seasoning is a healthy 15.90 months.
EU Risk Retention: The Seller will retain for the life of the transaction a material net economic interest of not less than 5% in the transaction as required by Article 6 of the Securitisation Regulation. As of the Issue Date such interest will, in accordance with Article 6(3)(d) of the Securitisation Regulation, be retained through the holding of the Class B Notes.
US Risk Retention: The issuance of the Compartment 11 Notes was not designed to comply with the 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 to accomplish such compliance.
STS: As of the Issue Date, Transaction 11 is intended to meet the requirements for simple, transparent and standardised non-ABCP securitisations provided for by Articles 19 to 22 of the Securitisation Regulation.
Compare/contrast: Silver Arrow Comp 11, Cars Alliance Auto Leases France V 2020-1