Red & Black Auto Lease France 2: 02 July 2023
The purpose of the Issuer is to purchase from time to time from TEMsys, known under its commercial name “ALD Automotive”, certain auto lease receivables arising from or in connection with auto lease contracts entered into between the Seller and certain lessees who are private legal entities or natural persons acting for business purposes entering into the lease contracts within the framework of their business activity.
At the cut-off date (31 May 2023) the portfolio consisted of 29,303 Lease Agreements advanced to 10,817 lessees in 9,605 lessee groups. The Average Discounted Balance per Lease Agreement is Eur23,537 and per Lessee is Eur63,761. Distribution by Vehicle category: Passenger car – 90.09%, Light commercial vehicle – 9.91%. The WA seasoning is 14.0 months. Regional concentration: Ile-de-France – 41.54%, Auvergne-Rhône-Alpes – 12.77% and Provence-Alpes-Côte d'Azur – 7.30%.
EU Risk Retention: The Seller will retain a material net economic interest of not less than 5% in the securitisation as required by Article 6(1) of the Regulation (EU) 2017/2402 of the European Parliament. As at the Closing Date, the Seller will meet this obligation by (a) the subscription and full ownership of all the Class C Notes issued by the Issuer and (b) the funding by the Seller of the General Reserve, which will represent in aggregate not less than 5% of the nominal value of the securitised exposures and which constitute an interest in the first loss tranche as required by Article 6(3)(d) of the Securitisation Regulation.
US Risk Retention: The Seller, as the sponsor under the US Risk Retention Rules, does not intend to retain at least 5% of the credit risk of the "securitized assets" for purposes of compliance with the final rules promulgated under Section 15G of the Securities Exchange Act of 1934, but rather intends to rely on an exemption provided for in Section 20 of the US Risk Retention Rules regarding non-US transactions.
STS: The transaction is intended to qualify as an STS securitisation within the meaning of Article 18 of the Securitisation Regulation.
Compare/contrast: Red & Black Auto Lease France 1, Sapphireone Auto FCT 2022-1