Friary No 8 Plc: 17 September 2023
Another stand-alone issue from the Principality, where the Issuer will make payments on the Notes from payments of principal and revenue on a portfolio comprising mortgage loans originated by the Society and secured over residential properties located in England and Wales which will be purchased by the Issuer on the Closing Date.
For Eligibility criteria please see the Prospectus (available at www.euroabs.com).
At the cut-off date (30 June 2023) the portfolio consisted of 4,826 accounts (5,121 sub-accounts) with an average current borrower balance of £132,253 and a maximum loan size of £789,035. None of the loans are currently in arrears. Repayment type (by total balances): repayment - 93.64%, interest only - 6.36%. Interest rate product: fixed rate to SVR - 96.49%, discounted SVR - 1.73% and others - 1.78%. The WA current LTV is 52.92% (original LTV was 69.18%) and the WA seasoning is 35.54mnths. Regional concentration (by current balances): Wales - 27.94%, North West - 14.58%, West Midlands - 11.06% and Yorkshire & the Humber - 9.08%.
UK & EU Risk Retention: The Seller will retain a material net economic interest of not less than 5% in the securitisation as required by the text of Article 6(1) of the UK Securitisation Regulation and Article 6(1) of the EU Securitisation Regulation. As at the Closing Date, such retention requirement will be satisfied by Principality holding the first loss tranche in accordance with Article 6(3)(d) of the UK Securitisation Regulation and Article 6(3)(d) of the EU 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 securitised assets for purposes of compliance with the final rules promulgated under Section 15G of the Securities Exchange Act of 1934, as amended (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.
STS: On or about the Closing Date, it is intended that a notification will be submitted to the FCA by Principality, as originator, in accordance with Article 27 of the UK Securitisation Regulation, confirming that the requirements of Articles 18-22 of the UK Securitisation Regulation (the UK STS Requirements) have been satisfied with respect to the Notes. It is not intended that the issue of the Notes complies with the requirements of Article 18-22 of the EU Securitisation Regulation.
Compare/contrast: Friary No.7, Holmes Master Issuer (2023-2), Tower Bridge Funding 2023-2