Hermitage 2023 PLC: 01 August 2023

The Issuer will make payments on the Notes and the Class A Loan Notes from payments of principal and revenue received from a portfolio comprising equipment hire-purchase and lease receivables relating to equipment located in England, Wales and Scotland originated and sold by Haydock Finance Limited.

Haydock is a business finance specialist providing financing solutions to small and medium sized enterprises with respect to a variety of equipment. Haydock is authorised by the FCA to conduct its business. Haydock’s primary business is the provision of unregulated hire-purchase and finance lease facilities to enable small and medium sized businesses to acquire or re-finance business-critical hard assets.

The Provisional Portfolio comprised 10,218 Receivables (6,819 obligors) with an aggregate Outstanding Principal Balance and accrued interest of £511.6mln. The Average Current Principal Balance is £50,070. Product Type: Hire Purchase – 94.0%, Finance Lease – 6.0%. Obligor concentration: Top 1 – 0.63%, top 5 – 3.34%, top 20 – 6.78%. The WA seasoning is 11.83 months. Regional (obligor) concentration: Greater London – 15%, North West – 15%, South East – 13% & Scotland – 10.0%.

UK & EU Risk Retention: On the Closing Date and until all of the Debt has been redeemed in full, Haydock Finance Limited, 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. As at the Closing Date, the Retention will be satisfied by the Retention Holder subscribing for and thereafter holding an interest in the Class E Notes.

US Risk Retention: The Seller does not intend to retain at least 5% of the “credit risk” of the “securitized assets” for purposes of compliance with the US Risk Retention Rules, but rather intends to rely on an exemption provided for in Section 20 of the US Risk Retention Rules regarding non-US transactions.

Compare/contrast: DLL UK Equipment Finance 2019-1 (redeemed), Temese Funding 2 plc (refinancing)