Silver Arrow S.A. Compartment UK 2025-1: 28 March 2025

Another standalone issue from Mercedes-Benz Financial Services.

The Issuer will make payments on the Notes from payments of principal and interest it receives from borrowers pursuant to automotive hire purchase agreements and personal contract plan agreements originated by Mercedes-Benz Financial Services UK Limited, which will be purchased by the Issuer on the purchase date (being identical with the issue date). These hire purchase agreements and personal contract plan agreements provide for equal monthly payments over the term of the contract or monthly payments and a final bullet payment or, in respect of the personal contract plan agreements, an additional larger "balloon" Optional Final Payment at the end of the term.

Eligibility criteria (includes): such Receivable has been originated by the Seller pursuant to a Financing Contract in the ordinary course of the Seller's business in compliance with the Credit and Collection Policy; the obligor is not insolvent; monthly instalments are paid through Direct Debit; if it is a corporate entity it has its registered office in England, Scotland, Wales or Northern Ireland or, if it is an individual, it has its place of residence in England, Scotland, Wales or Northern Ireland; has made at least one scheduled monthly payment; is denominated and payable in Sterling; is governed by the laws of England and Wales; MBFS holds legal title to the related vehicle.

The portfolio consists of 34,249 agreements, where the average current outstanding balance is £26,073 and the largest is £166,797. Product type (by agreement/current balances): New Contract Purchase 18,220 / 66.56%, Used Contract Purchase 9,251 / 22.46%, Used Hire Purchase 5,005 / 6.73% and New Hire Purchase 1,773 / 4.25%. Vehicle status: New Passenger Car 19,071 / 68.56%, Used Passenger Car 13,615 / 28.21%, New Commercial Vehicle 922 / 2.25% and Used Commercial Vehicle 641 / 0.981%. Customer type: Private Individual 31,110 / 89.96%, Company 2,780 / 9.18%, others 359 / 0.86%. The WA seasoning is 13.24 months. Regional distribution: London - 20.26%, South East England - 13.37%, North West England - 11.07% and East of England – 10.79%.

UK & EU Risk Retention: MBFS is the originator for the purposes of Article 2(3) of the UK Securitisation Regulation and the EU Securitisation Regulation and will retain, for the life of the transaction, a material net economic interest of at least 5% in the nominal value of the securitised exposures. As of the Issue Date, such interest will be retained through the holding of the Class B Notes and the Subordinated Loan.

US Risk Retention Rules: The transaction is not intended to involve the retention by a sponsor of credit risk for purposes of compliance with the US Risk Retention Rules, but rather intends to rely on the exemption provided for under Section 20 of the US Risk Retention Rules regarding non-US transactions, and no other steps have been taken by the Issuer, the Seller, the Arranger, the Lead Manager or any of their respective affiliates or any other party to accomplish such compliance.

Compare/contrast: Silver Arrow SA Compartment UK 2024-1, Dowson 2024-1 plc, Pulse UK 2024 plc