Bumper UK 2021-1: 13 March 2021
This will be the fifth Bumper transaction to feature UK car leases, where the Issuer will make payments on the Notes from an initial portfolio comprising Lease Receivables, RV Claims and Final Balloon Payment Receivables originated by LeasePlan UK Limited, which will be purchased by the Issuer on the Closing Date.
The portfolio consists of 34,036 lease agreements. Product type (no. lease agreements / % of discounted balance): Operating lease 27,134 / 83.28%, Finance lease 6,203 / 14.87%, Contract purchase 451 / 1.30% and Lease purchase 248 / 0.55%. Business Sector (no. lease agreements / % of discounted balance): SME/Retail 23,785 / 68.54%, Corporate 9,925 / 30.35%, Public sector 326 / 1.11%. Regional concentration (% of discounted balance): South East 26.06%, the North West 13.90% and the West Midlands 13.69%.
Significant Investor: LPUK will, on the Closing Date, purchase 100% of the Class B Notes.
UK Risk Retention: On the Closing Date and while any of the Notes remain outstanding LPUK will, as an originator for the purposes of the UK Securitisation Regulation, retain a material net economic interest of not less than 5% in the securitisation as required by Article 6(1) of the UK Securitisation Regulation and Article 5(1)(d) of the EU Securitisation Regulation. As at the Closing Date, the Retention will comprise LPUK holding the first loss tranche, namely the Class B Notes, in accordance with Article 6(3)(a) of the UK Securitisation Regulation.
US Risk Retention: LPUK, as the sponsor under the final rules promulgated under Section 15G of the Securities Exchange Act of 1934, does not intend to retain at least 5% of the credit risk of the securitised assets for the purposes of compliance with the U.S. Risk Retention Rules, but rather intends to rely on an exemption provided for in Section 20 of the U.S. Risk Retention Rules regarding non-U.S. transactions.
STS: On or about the Closing Date, it is intended that a notification will be submitted to the FCA in accordance with Article 27 of the UK Securitisation Regulation, confirming that the requirements of Articles 18 to 22 of the UK Securitisation Regulation have been satisfied with respect to the Notes and the UK Financial Conduct Authority.
Compare/contrast: Bumper UK 2019-1, Silver Arrow S.A. Compartment UK 2020-2