Twin Bridges 2021-1: 04 March 2021
The sixth 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 all originated by the Seller itself under the Foundation Home Loans brand.
As at the portfolio reference date (31 January 2021) the portfolio consisted of 1,368 buy-to-let accounts, where the average outstanding balance per account is £219,156 and the largest is for £1.993mln. All loans were subject to a full property valuation, and all are performing. Borrower type: individual - 38.49%, limited company - 61.51%. Redemption type: interest-only - 96.68%, capital & interest - 2.70% and part & part - 0.63%. Loan purpose: re-mortgage - 50.63%, purchase - 49.37%. Product type: Fixed (Reverts to variable) - 92.81%, discount - 7.19%. The WA CLTV is 71.27% (OLTV was 71.30%) and the WA seasoning is 3.14 months. Regional concentration: Greater London - 45.99%, South East - 16.27% and the North West 8.49%.
Significant Investor: The Seller will, on the Closing Date, purchase 100% of the Class X3 Notes, 100% of the Z1 Notes and 100% of the Class Z2 Notes and will, on the Closing Date, hold 100% of the RC1 Residual Certificates and the RC2 Residual Certificates.
EU & UK Risk Retention: On the Closing Date and until all the Notes have been redeemed in full, Paratus, as originator (the Retention Holder), 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 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018, and Article 6 of Regulation (EU) 2017/2402 (the EU Securitisation Regulation). As at the Closing Date, the Retention will be satisfied by the Retention Holder subscribing for and thereafter holding an interest in each of the Classes of Notes sold to investors, represented in this case by the retention by the Retention Holder of at least 5% of each Class of Notes other than the Class X Notes, as required by Article 6(3)(a) of the UK Securitisation Regulation and Article 6(3)(a) of the EU Securitisation Regulation.
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.
Compare/contrast: Twin Bridges 2020-1, Elstree Funding No.1, Hops Hill No.1 plc