Small Business Origination Loan Trust 2019-3 DAC is a securitisation of approximately £250,000,000 of SME loans originated by Funding Circle Limited.
This is one of the first securitisations domiciled in Ireland which meets the ‘Simple, Transparent and Standardised’ requirements of the Securitisation Regulation that came into effect in January last year.
The portfolio comprises of roughly 3,000 loans to SMEs originated by Funding Circle UK. It is Europe’s first STS securitisation of ‘platform lending’, also known as ‘peer-to-peer’ lending.
The key parties to this transaction are as follows:
Legal/Tax Advisor: Matheson
Listing Agent: Matheson
Arranger: Citigroup Global Markets Limited
Originator/Sponsor: Funding Circle Limited
Joint Lead Managers: Citigroup Global Markets Limited / Deutsche Bank AG, London Branch
Cash Manager/Calculation Agent/Paying Agent: Citibank, N.A., London Branch
Corporate Administrator: Intertrust Management Ireland Limited
Ratings Agencies: S&P / Moody’s
STS Verification Agent: Prime Collateralised Securities (PCS) UK Limited
Servicer/Collection Agent: Funding Circle Limited
Backup Servicer/Collection Agent: Link Financial Outsourcing Limited
Interest Rate Cap Provider: NatWest Markets Plc
Retention Holders: Funding Circle Limited and Glencar Investments XI DAC
The transaction is structured as follows:
Class A Notes: £165,006,000
Class B Notes: £7,500,000
Class C Notes: £22,501,000
Class D Notes: £26,251,000
Class E Notes: £16,251,000
Class F Notes: £12,500,000
Class Z Notes: £12,500,000
These notes were listed on the Main Securities Market of Euronext Dublin on 27th November 2019.
Updated 13/02/2020 with clarifications – this is the first platform lending STS securitisation in Ireland, but not the first STS.
The full prospectus for this deal is available here: https://www.ise.ie/debt_documents/Prospectus%20-%20Standalone_9489757e-5e8e-426f-8fa0-07316209b173.pdf
More information from the transaction advisor, Matheson: https://www.matheson.com/news-and-insights/article/matheson-advises-on-funding-circles-europes-first-sts-platform-lending-secu