Whole business securitisations

  • 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

  • Economic improvement to boost esoteric ABS

    The improving US and global economies will generally boost collateral performance of US commercial and esoteric (C&E) ABS in 2014, Moody's says. Real estate values, technological obsolescence and idiosyncratic factors are also expected to drive credit performance across the sector.

    "Collateral performance of securitisations backed by equipment loans and leases will benefit the most from the modestly improving US economy," .......

    News Round-up 3 December 2013

  • Driving disintermediation

    Credit availability facing further headwinds?

    Global regulatory initiatives are fostering bank disintermediation in the securitisation market. But creeping oversight of the shadow banking system could also further reduce the availability of credit.

    The recession has played out unequally, according to Tamara Box, head of structured finance at Reed Smith. "If a borrower is in prime territory, they're fine; otherwise, they're not. Current monetary and economic .......

    News Analysis 28 November 2013

  • Punch ups the ante on restructuring

    Punch's latest financial results raise the probability of the group removing its support of its securitisations as another round of restructuring proposals begins next month. Without an agreement on the restructuring, a borrower event of default in Punch A and B would follow.

    Punch's Q1 results for the 2013/2014 financial year reported positive like-for-like net income growth in the core .......

    News 27 November 2013

  • Value seen in Unique juniors

    Enterprise Inns disclosed in its full-year 2013 results that it placed a £97m convertible bond, the proceeds of which were used to cancel £70m of its forward start bank facility. The issuance has been welcomed for creating subordination for the pubco's securitisation.

    European securitisation analysts at Barclays Capital suggest that the convertible bond issue is positive for Enterprise Inns' debentures .......

    News 20 November 2013

  • Upside potential for Spirit A7s

    Spirit has released the results of its tender offer for its class A1 and A3 bonds (SCI 22 October), with £126.2m tendered in the A1s (87% of the outstanding) and £107.8m of the A3s (92% of the outstanding). The pubco will accept 80% of those tendered for the A1s and 54% for the A3s to reach the original target acceptance .......

    News Round-up 4 November 2013

  • Pubco swap offer 'credit positive'

    Spirit has made an offer to tender and swap its existing A1 and A3 bonds into newly-issued A6 and A7 bonds. The tender and swap offer is for up to 50% of the A1 bonds and 70% of the A3s, with the remainder left outstanding and amortising in line with the existing schedule.

    ABS analysts at Barclays Capital note that .......

    News 22 October 2013

  • Week starts with WBS flurry

    A number of UK whole business securitisation bonds were out for the bid yesterday. Some noteworthy credit tenant-linked CMBS were also seen in secondary, with SCI's PriceABS service recording covers ranging from 113 to 280 for the names.

    Among the WBS bonds circulating in yesterday's session were a trio of pub names. The tightest cover among them was .......

    Market Reports 17 September 2013

  • Punch restructuring progressing?

    Punch Taverns has disclosed that it is continuing its engagement with stakeholders, which now includes the ABI special committee of noteholders and its advisers. Barclays Capital European securitisation analysts suggest that this means class A bondholders could be actively involved and thus restructuring negotiations are likely being held on a more constructive basis (SCI passim).

    "We continue to take a .......

    News Round-up 13 September 2013

  • Wage pressures weigh on Arsenal bonds

    Arsenal Football Club's record signing of Mesut Ozil for £42.5m could be a concern for Arsenal Securities bondholders if it is followed by more significant transfers in the January transfer window, according to securitisation strategists at Barclays Capital. Increased wage pressures at the club raise the risk of the wage-to-revenue ratio rising above 70% - a level at which Fitch .......

    News Round-up 3 September 2013

  • Dignity tap to finance acquisition

    Funeral services provider Dignity plans to tap its Dignity Finance whole business securitisation. At the same time, the transaction's security group will acquire a new Dignity entity.

    Dignity Finance closed in April 2003 and has already been tapped twice since then -in February 2006 and September 2010 - as permitted by the transaction documents. As on the closing and the .......

    News Round-up 22 July 2013

  • Negative outlook for UK WBS

    Fitch says that the outlook for UK whole business securitisations (WBS) remains predominantly negative, largely due to weak economic conditions and the consequent pressures on consumer and government spending. In particular, the main UK WBS sectors - pubs and care homes/hospitals - are expected to continue to struggle in the latter stages of 2013.

    The UK government's surprise move to .......

    News Round-up 4 July 2013

  • AA plans WBS

    The UK Automobile Association (AA) is prepping a whole business securitisation dubbed AA Bond Co. Proceeds will refinance part of the liabilities of the Acromas Group.

    The AA Group operates a roadside assistance service in the UK and Ireland, as well as providing complementary services, such as insurance, driving services and home emergency response. The AA provides breakdown services either .......

    News Round-up 18 June 2013

  • Revised Punch proposal welcomed

    A revised restructuring proposal from pub operator Punch appears to address some of the main concerns with the previous proposal (SCI 11 February), while also containing a number of optional extras. The flexibility and improvement in terms for senior bondholders mean that the restructuring is more likely to be agreed, according to MBS analysts at Barclays Capital.

    "We would expect .......

    News Round-up 10 June 2013

  • CAA consultation 'credit neutral'

    UK airport regulator the Civil Aviation Authority (CAA) last month launched a consultation on initial proposals for regulation of Heathrow and Gatwick airports during the five-year period beginning April 2014 (the so-called sixth quinquennium, or Q6). The Civil Aviation Act 2012 - which became effective in December -introduces a new license-based regulatory regime for Q6, allowing the CAA the flexibility .......

    News Round-up 28 May 2013

  • Reforms to hit pubco bonds

    The UK government has unveiled its proposals to regulate the tied tenanted pubco sector with a new statutory Code of Practice, backed by an independent adjudicator. The reforms could transfer an estimated £4,250 per pub in profits from the owners of tied pubs to the tenant in the median case, according to ABS analysts at Barclays Capital.

    "These proposals - .......

    News Round-up 22 April 2013

  • Pre-wired flexibility

    Intu CMBS could have broader attraction

    The recent £800m Intu (SGS) Finance 2013 series 1 transaction represents a watershed in UK CMBS as it uses a complex legal structure to achieve a commercially simple end result. Indeed, it is hoped that the issue's success will tempt other real estate companies that moved into unsecured debt post-financial crisis back to the CMBS market.

    The Intu deal, which .......

    News Analysis 18 April 2013

  • Student paper surfaces as ABS picks up

    Bank card bonds may have accounted for the bulk of secondary ABS supply on Monday, but a busier session yesterday saw more variety out for the bid. Much of the available paper comprised student loan assets, but SCI's PriceABS data also shows timeshare, container and whole-business ABS tranches circulating.

    "Secondary trading flows have increased from the prior session. .......

    Market Reports 3 April 2013

  • Stable performance forecast for esoterics

    Moody's expects the performance of asset classes backing US commercial and esoteric ABS to be stable in 2013.

    "With event risk in general declining, most of the kinds of risk we have to watch out for now are idiosyncratic; that is, risks specific to an issuer or asset class," says Michael McDermitt, a Moody's senior credit officer. "This would include, .......

    News Round-up 14 March 2013

  • Punch class Ms organise

    Punch Taverns has released a positive trading statement and still expects to meet guidance on full-year operating profit, achieve disposals above book value and complete a consensual restructuring by the summer. However, this may prove optimistic, as investor groups begin to organise themselves.

    Punch A class M noteholders are the latest investor group to hire advisors, a move which didn't .......

    News 12 March 2013

  • Innovative WBS marketing

    Arqiva Financing, a £750m UK whole business securitisation originated by the Arqiva group, has hit the market. The transaction is unique in that the bank lenders will grant term facilities to FinCo - a newly created SPV outside the securitisation group - rather than providing funding directly to the borrower.

    The deal comprises £350m class A and £400m class B .......

    News Round-up 14 February 2013
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