Slaughter and May advised NewDay Cards - debt issue under credit card, store card and instalment credit securitisation

17 Oct 2017

Slaughter and May advised NewDay Cards Ltd (NewDay Cards) and its affiliates in relation to a public debt issue under its credit card, store card and instalment credit securitisation.

The transaction involved the issuance, through a master trust structure, of £298.5 million of Series 2017-1 Floating Rate Asset Backed Notes (the Series 2017-1 Notes) by NewDay Partnership Funding 2017-1 plc.

The Series 2017-1 Notes are ultimately backed by income from a portfolio of credit card, store card and instalment credit receivables beneficially owned by NewDay Partnership Receivables Trustee Ltd (the Receivables Trustee).

The Series 2017-1 Notes have been listed on the London Stock Exchange and comprise £222.3 million Class A Notes (rated Fitch:AAAsf/DBRS:AAA(sf)), £29.4 million Class B Notes (rated AAsf/AAA(sf)), £22.2 million Class C Notes (rated A-sf/AA(high)(sf)), £11.1 million Class D Notes (BBBsf/A(sf)), £8.7 million Class E Notes (rated BBsf/BBB(sf)) and £4.8 million Class F Notes. The Class A, Class B, Class C, Class D and Class E Notes were publicly issued, whilst the Class F Notes were retained by NewDay Partnership Transferor plc, an affiliate of NewDay Cards. Lloyds Bank plc, HSBC Bank plc, BNP Paribas, London Branch and Citigroup Global Markets Limited acted as joint lead managers.

Under the securitisation structure, the Receivables Trustee has appointed NewDay Cards as servicer in respect of the portfolio. Legal title to the receivables within the portfolio remains with NewDay Ltd, which is an authorised payment institution and a wholly-owned subsidiary of NewDay Cards.

The transaction was co-arranged by Lloyds Bank plc and NewDay Cards.

Clifford Chance LLP provided English law advice to the joint lead managers and the co-arrangers.

Contacts

Financing: Richard Jones (partner), Adrian Wilkes (associate); Tax: Gareth Miles (partner), Homyar Pahlan (associate); Financial Regulation: Ben Kingsley (partner); Sjoerd van der Zwaag (associate)


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