Slaughter and May advised Aviva Equity Release UK Limited (Aviva) in relation to (i) the disposal of a portfolio of equity release mortgage loans secured over residential properties located in England, Wales, Scotland and Northern Ireland in respect of which Aviva Equity Release UK Limited is the original lender (the Portfolio); and (ii) the establishment of the Highcrest SPV 1 PLC (Highcrest) securitisation.
The transaction involved the sale of the Portfolio by Aviva to WEL Asset Origination LLC (the Retention Holder), who then immediately on-sold the Portfolio to Highcrest. Highcrest issued Equity Release Mortgage Backed Fixed Rate Notes due December 2090 under Rule 144A (the Notes), which are backed by receipts from the Portfolio. The Notes comprised an A0 variable funding note (rated Aaa (sf) (Moody’s)/ AAA (sf) (ARC)), £57,523,000 Class A1 Notes (rated Aa2 (sf) (Moody’s)/ AA (sf) (ARC)), £9,371,000 Class A2 Notes (rated Aa3 (sf) (Moody’s)/ AA- (sf) (ARC)), £28,865,000 Class A3 Notes (rated A3 (sf) (Moody’s)/ A+ (sf) (ARC)), £47,000,000 Class B0 Notes (rated Baa2 (sf) (Moody’s)/ A (sf) (ARC)), and £40,000,000 Class C Notes (not rated). The Notes (other than the Class A0 Notes) have been listed on the official list of the Vienna MTF.
Under the securitisation structure, Highcrest has appointed Aviva Equity Release UK Limited as servicer in respect of the Portfolio. Legal title to the Portfolio remains with Aviva Equity Release UK Limited.
Lloyds Bank Corporate Markets acted as Arranger and Joint Lead Manager and Natixis acted as a Joint Lead Manager.
