PCL Funding V Plc (Series 2021-1): 23 April 2021
This will be another standalone transaction where the Issuer’s primary source of funds to make payments on the Notes will be the payments it receives from the collections received in respect of a portfolio of advances made by Premium Credit Limited to fund insurance premia and other payment plan receivables which will be purchased by the Asset Trustee on an ongoing basis.
PCL’s income derives from a combination of interest income on the amounts they advance and fees receivable for the services provided. For the year ended 31 December 2019, PCL generated income of £108.1 million and operating profit before tax of £36.1 million. Since 2015 PCL has been owned by Cinven, a leading international private equity firm.
PCL has been securitising receivables since 31 October 2012, when a standalone (and privately funded) facility was established.
At the cut-off date (28 February 2021) the portfolio consists of 1,612,003 receivables, where the average principal balance is £609. Product type (by number of receivables & % balances): C&C 122,760 – 55.82%, PL&S 1,407,739 – 34.19%, DDMS 70,326 – 8.10% and SFP 11,178 – 1.88%. Customer type (by number of receivables & % balances): Corporate 124,704 – 59.61%, Retail 1,487,299 – 40.39%. Obligor concentration: Top 1 – 0.61%, Top 5 – 1.94%, Top 10 – 3.27%. Country concentration: UK – 94.48%, Ireland – 5.52%. The WA seasoning is 4.67 months.
EU & UK Risk Retention: Premium Credit Limited (the “Retention Holder”), as “originator” as defined in Article 2(3) of each of the Securitisation Regulations, will for the life of the transaction retain a material net economic interest of not less than 5% in the securitisation in accordance with: (i) Article 6(1) of Regulation (EU) No. 2017/2402 and (ii) Article 6(1) of Regulation (EU) No. 2017/2402 as it forms part of UK domestic law by virtue of the EUWA. As at the Series 2021-1 Closing Date, such interest will take the form of a first loss tranche in accordance with Article 6(3)(d) of each of the Securitisation Regulations comprising the Class D Notes having a Principal Amount Outstanding of not less than 5% of the Aggregate Receivable Principal Balance.
US Risk Retention: The Seller intends to rely on an exemption provided for in Section __.20 of the U.S. Risk Retention Rules regarding non-U.S. transactions that meet certain requirements.
STS: The Series 2020-1 Notes are not intended to be designated as STS securitisation for the purposes of the Securitisation Regulation.
Compare/contrast: PCL Funding IV plc (Series 2020-1), Drury Lane Funding 2020-1 plc