Whole business securitisations

  • Punch hit by restructuring uncertainty

    S&P has maintained its double-B minus (with negative implications) ratings on the Punch Taverns Finance A class A1(R) and A2(R) notes, while lowering the ratings on the class M1, M2(N), B1, B2, B3, C(R) and D1 notes (credit watch negative). The agency has also lowered to triple-C (credit watch negative) from single-B plus its ratings on the Punch Taverns Finance .......

    News Round-up 12 September 2014

  • TRACE update to impact esoteric liquidity?

    The US SEC has approved amendments to TRACE dissemination rules, stipulating that CUSIP-level execution prices and original face values be publicly disclosed on ABS trades starting on 27 April 2015. The new rules are expected to have a limited impact on traditional ABS sectors, but could affect liquidity in non-traditional asset classes.

    SEC-registered and 144a ABS - defined as securitised .......

    News 1 September 2014

  • Punch seeking further support

    Punch Taverns has announced that its restructuring proposals for the Punch A and Punch B securitisations have the support of a broad range of stakeholders, which in aggregate own or control around 65% of the notes and around 54% of the equity share capital of the pubco. However, implementation of the proposals is conditional upon the approval of shareholders, all .......

    News Round-up 18 August 2014

  • Punch B upside expected

    With the ABI special committee now supporting the latest Punch restructuring proposal (SCI 22 July), it now appears likely that the restructuring could be completed within the next six months. European asset-backed analysts at Barclays Capital see most upside in the Punch B securitisation under this scenario, given that the Punch A class B notes have more value as currently .......

    News 1 August 2014

  • Punch paves way for restructuring

    Punch A and Punch B noteholders voted overwhelmingly in favour of Punch Taverns' covenant waiver requests at meetings convened on 18 July. All 16 meetings were quorate and the waivers will now expire on 19 November. It is a condition of the waivers that certain milestones are met, including that a restructuring to implement the stakeholder group proposal is launched .......

    News Round-up 22 July 2014

  • Pub acquisition welcomed

    Mitchells & Butlers has acquired 173 Orchid pubs for £266m on an EBITDA multiple of 10 times, after taking into account cost savings and synergies. Barclays Capital European asset-backed analysts view the move as a slight positive for the pub securitisation, since assets will be retained within the overall group rather than using group cash for a special dividend.

    The .......

    News Round-up 16 June 2014

  • Punch restructuring alternative proposed

    A stakeholder group comprising seven investors in the Punch A and Punch B whole business securitisations has proposed alternative restructuring terms to those launched by Punch Taverns at the beginning of the year (SCI 15 January). The proposal would result in a reduction in total net debt of £600m.

    Under the proposal, junior notes in Punch A and Punch B .......

    News Round-up 27 May 2014

  • US ABS activity picks up

    US ABS BWIC volume approached US$180m yesterday on the back of a couple of quieter sessions. SCI's PriceABS data shows a number of aircraft ABS bonds out for the bid, with the auto and credit card sectors also well represented.

    Among the aircraft names circulating yesterday, the ACAP 2000-1A A1 tranche was talked in the high-40s and at .......

    Market Reports 21 May 2014

  • Pricing partnership formed

    SCI has launched a partnership with Intex to provide INTEXcalc users with free trial access to SCI PriceABS market prices for securitised products. SCI PriceABS is a daily secondary market colour and price service that includes pre- and post-auction price talk and covers/traded prices for ABS, CMBS, RMBS and CDO/CLO bonds across Europe and the US.

    The SCI .......

    News Round-up 7 May 2014

  • Greene King bonds boosted

    Greene King has sold 275 non-core tenanted pubs to Hawthorn Leisure for £75.6m. The proceeds are expected to be recycled into the managed estate, a credit positive for the pubco's securitisation

    The pub sales generated EBITDA of £12.4m, implying a disposal multiple of 6.1x, according to Barclays Capital European securitisation analysts. It is unclear whether this multiple was pre- or .......

    News Round-up 1 May 2014

  • Esoteric knowledge

    Investors drawn to developing non-traditional ABS market

    US esoteric ABS is attracting greater attention as investors seek yield. Several potential growth areas are emerging, with new, innovative collateral types also anticipated.

    Respondents to a recent DBRS survey overwhelmingly favoured esoteric assets over other ABS sectors and identified yield as a primary motivation (SCI 21 March). Dan Castro, president at Robust Advisors, agrees that yield is a key .......

    News Analysis 3 April 2014

  • Punch A downgraded

    S&P has lowered to double-B minus from triple-B and placed on credit watch negative its ratings on Punch Taverns Finance (Punch A) class A1(R) and A2(R) notes. At the same time, the agency has placed on credit watch negative the ratings on Punch A's class M1, M2(N), B1, B2, B3, C(R) and D1 notes, as well as the Punch Taverns .......

    News Round-up 2 April 2014

  • Spirit upside outlined

    Pubco Spirit has announced strong results for the first half in both its managed and tenanted businesses. The disclosure has strengthened the case for an upgrade of Spirit bonds to investment grade within a 12-month horizon.

    Spirit's managed like-for-like (LFL) sales are up by 6.1% in the eight weeks to 1 March and up by 4.8% in the 28 weeks. .......

    News Round-up 18 March 2014

  • Tiering forecast for water WBS

    Fast-tracking of business plans among certain UK water companies is expected to drive tightening across their securitised bonds. The move follows the release of Ofwat's guidance on allowed weighted-average cost of capital (WACC) for the 2015-2020 regulatory period (PR14) (SCI 10 February).

    Allowed returns are likely to fall to 3.85% for PR14, versus 5.1% for the previous regulatory period (PR09). .......

    News 10 March 2014

  • Best practices

    Noteholder communications, technology and clearing systems discussed

    Participants in SCI's latest corporate trust roundtable met in December to discuss post-closing best practices and noteholder communications. Technology and documentation challenges, as well as improvements to the clearing systems were among the topics covered. (The full SCI Corporate Trust Roundtable discussion can be downloaded here.)

    Corinne Smith, SCI: Investor concern over securitisation noteholder communications is increasing. I .......

    News Analysis 13 February 2014

  • WACC guidance weighs on water ratings

    S&P notes that new regulatory guidance could bring rating stress for UK water utilities. Water sector regulator Ofwat recently offered new lower guidance on allowed weighted-average cost of capital (WACC) for the 2015-2020 regulatory period, which is expected to impact utilities' business plans by eroding cashflows. Some companies may therefore rework their plans to include mitigating measures.

    To encourage competition .......

    News Round-up 10 February 2014

  • Punch restructuring proposal published

    Punch has released the full terms of its restructuring proposal, which represents the culmination of 14 months of stakeholder engagement. The restructuring is conditional upon the approval of the Punch A and Punch B securitisation noteholders, as well as certain other securitisation creditors. Consent solicitation documents relating to each securitisation and a notice of noteholder meetings to be held on .......

    News Round-up 15 January 2014

  • Foundation for continued growth?

    The US CLO and CMBS sectors saw impressive issuance in 2013, as the recovery in the asset classes continued apace. European volumes, meanwhile, reflect the growing diversity of jurisdictions on offer across the region's ABS market.

    Last year proved to be impressive for US CMBS 3.0 issuance, with conduit volumes totalling US$53.1bn, a 65% increase from US$32.2bn in 2012. US single-borrower/single-asset .......

    News 14 January 2014

  • European NPLs and the advantages of securitisation

    Dennis Buckley, director at Credit Mediation Limited, discus...

    Estimates from reports compiled by PwC and EY put the current volume of non-performing loans (NPLs) made by banks within the EU at between €1.2trn and €1.5trn, with these levels expected to rise further in the next few years. The market has seen a number of high-profile sales of large NPL portfolios, the most recent being Lloyds' sale of its .......

    Talking Point 7 January 2014

  • Punch downgraded ahead of restructuring

    Moody's has downgraded the ratings of six classes of notes issued by Punch Taverns Finance (Punch A) and three classes of notes issued by Punch Taverns Finance B (Punch B). The Punch A M1 and M2, as well as Punch B B1 and B2 notes remain on review for possible downgrade.

    The rating action was prompted by the progress update .......

    News Round-up 23 December 2013

  • Negative outlook for WBS

    Fitch says its outlook for UK pub and healthcare whole business securitisations is predominantly negative for 2014. This is driven by a fragile UK economic recovery, public spending austerity and regulatory pressures.

    "Continuing decline in average real income, combined with public spending cuts mainly affecting healthcare funding as well as various regulatory pressures are all holding back the outlook of .......

    News Round-up 11 December 2013
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