Whole business securitisations

  • 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

  • Punchy proposal

    Mixed implications for pub paper

    Punch Taverns last week announced proposed amendments to the capital structure of both its Punch A and Punch B securitisations, with mixed implications for the bonds. Elsewhere, the pub sector continues to offer good value, with managed pubco paper looking most attractive.

    Punch's restructuring proposal looks positive for Punch A junior bonds, but could be negative for Punch B. Barclays .......

    News Analysis 11 February 2013

  • Annington tap possible

    Terra Firma is set to acquire Annington Homes from Nomura for £1bn of new equity, as well as new debt and the assumption of the existing debt. The new owner is also reportedly considering issuing a £500m PIK note subordinated to the securitised debt.

    The proposed terms include a five-year non-call period, which credit analysts at RBS suggest means that .......

    News Round-up 20 November 2012

  • Pubco's bonds look attractive

    Enterprise Inns' full-year results show improved like-for-like net income and decreased debt net of cash. The group has purchased and cancelled £65m of the fixed rate Unique securitisation notes, but Spirit bonds may still offer superior value.

    Enterprise's like-for-like net income is down by 1.2% for the year, marking a material improvement on last year when it was down 4.3%. .......

    News 20 November 2012

  • ALS equity transferred

    AerCap Ireland, the servicer on Aircraft Lease Securitisation (ALS), has sold its equity interest in the transaction to a subsidiary of Guggenheim Partners as part of a portfolio management strategy. Under the agreement, AerCap will continue to service and manage the aircraft portfolio.

    The portfolio comprises 50 aircraft valued at approximately US$1bn, leased to 26 different airlines. "We believe that .......

    News Round-up 16 November 2012

  • Punch restructuring underway

    Punch Taverns has released its results for the year ended 18 August. The pub operator also indicated that its debt restructuring process is finally underway.

    The board has conducted an extensive review of the capital structure and determined that both securitisations (Punch A and B) are over-levered and unsustainable in their current form. It states that the restructuring should include .......

    News Round-up 24 October 2012

  • Credit analyst moves on

    Guillaume Langellier has joined Friends Life as ABS credit analyst. He is responsible for buy-side credit research on consumer ABS, RMBS, CMBS and WBS.

    Langellier was most recently at Aviva Investors where he was also a credit analyst. Prior to that he worked at Fitch as head of WBS and he has also held posts at Lazard, UBS Warburg and .......

    Job Swaps 15 May 2012

  • Unique buybacks progress

    Enterprise Inn's first-half results reveal - perhaps earlier than expected - that the pub operator has bought back and cancelled £29m of class A4 notes from its Unique securitisation, plus an additional £10m A4 and £2m A3 notes since end-March. The average price for the A4 notes was 76p, according to European asset-backed analysts at RBS.

    Enterprise is targeting total .......

    News Round-up 15 May 2012

  • Capex concerns

    UK water companies to return to securitisation

    The UK Environment Agency has put the South East of England on drought status, with reservoir levels in the region already 20% lower than normal. To help fund additional capital expenditure - both to mitigate the impact of the drought and to manage long-term operating costs - a number of water companies are expected to tap the securitisation market this .......

    News Analysis 7 March 2012

  • Innovative whole business deal prices

    Center Parcs has priced its £1.2bn whole business securitisation, CPUK Finance. The transaction has a number of noteworthy features.

    Rated by Fitch and S&P, CPUK Finance comprises two tranches of triple-B notes. The £300m five-year class A1 notes printed at 390bp over Gilts, while the £440m 12-year class A2s came at 465bp over. The deal was arranged by Barclays Capital, .......

    News Round-up 20 February 2012

  • Enterprise sale boosts Unique bonds

    Enterprise Inns has sold 15 pubs, located across the west and south east of England, for £23m to Fullers based on a multiple-to-net income of 13.5x. Given that the pubs appear to have been bought for their trading potential rather than as a real estate play, the move is expected to help improve pub valuations outside of London.

    Although Enterprise .......

    News Round-up 3 February 2012

  • Law firm adds SF specialist

    Berwin Leighton Paisner has added a structured finance specialist to its banking and capital markets group. Prashanth Satyadeva joins from Clifford Chance, where he was a securitisation partner.

    Satyadeva advises banks, funds, corporates and others on securitisations and asset-backed finance structures across several sectors. He will report to Paul Severs, also formerly of Clifford Chance.

    .......

    Job Swaps 11 January 2012

  • Monoline replacement agreed

    Assured Guaranty (Europe) has replaced Ambac Assurance UK as financial guarantor and controlling creditor on Worcestershire Hospital SPC, a £97.2m UK Private Finance Initiative bond issue. The move is expected to enhance the creditworthiness of the bonds and was approved by 100% of the voting bondholders.

    The guarantees - for timely payment of scheduled principal and interest throughout the life .......

    News Round-up 9 January 2012

  • Counterparty criteria downgrade warning

    European transactions that did not implement changes to address counterparty exposures following the revision to S&P's rating criteria earlier this year and whose ratings are linked to a bank recently downgraded by the agency are expected to see knock-on downgrades in the next few days.

    S&P on 29 November revised its ratings on 37 of the largest financial institutions as .......

    News Round-up 1 December 2011

  • Unique strategy mooted

    In an investor call yesterday, Enterprise discussed the methods it is considering to mitigate a financial covenant breach in the Unique securitisation once the fixed rate debt starts to amortise in 2014.

    The firm stated it could change the beer supply and management service agreements, thereby injecting around £42m further EBITDA into the transaction. This would ensure that the DSCR .......

    News Round-up 23 November 2011

  • Lower growth projections weigh on WBS

    S&P reports that the UK corporate securitisations it rates have generally performed in line with expectations, as reflected in their business risk profiles and the agency's stresses. However, the pub sector has felt the strain of the economic downturn more than other sectors, it says.

    S&P notes that trading conditions for the pub sector remain difficult. Operating performance among tenanted .......

    News Round-up 22 November 2011

  • Punch bonds pressured as downgrades hit

    Fitch has cut its ratings on the Punch A and Punch B pub securitisations by between two to four notches, with the most meaningful impact being the removal of the Punch B class A notes from the iBoxx investment grade index. While not unexpected given the agency's revised criteria for UK whole business transactions (SCI passim), some technical selling pressure .......

    News Round-up 11 November 2011

  • CLEF buy-back completed

    Groupe Eurotunnel has bought back €110m of Channel Link Enterprises Finance (CLEF) notes at an average discount of 11%. The repurchased bonds have the same characteristics as the group's tranche C debt and are divided 60% in sterling and 40% in euros.

    Eurotunnel has been able to take advantage of the liquidity requirements of its creditors to divest some of .......

    News Round-up 3 October 2011

  • WBS bonds reclassified

    Markit announced in its annual index review that it has changed the classification of a series of whole business securitisation bonds from 'Collateralised/Securitised' to 'Corporate'. The change is due to these issuers operating in highly regulated environments where their debt behaves more like corporate debt than securitised debt. The change will take effect from 31 December and affects: BAA Funding; .......

    News Round-up 27 September 2011

  • 'Tapable' WBS upgraded

    In what has been described as an unprecedented move for the agency, Fitch has upgraded a tapable transaction, raising both the class A and B notes of Dignity Finance a single notch to A plus and triple-B plus respectively. The upgrades are mainly driven by the deal's strong performance to date, the agency says.

    Fitch's adjusted 52-week ending 1 July .......

    News Round-up 7 September 2011

  • Punch split confirmed

    Punch has announced its formal intention to split the business in two via the creation of a new listed entity called Spirit Pub Company, which will consist of the existing Spirit securitisation as well as a number of managed pubs outside the deal. The demerger remains conditional upon a shareholder vote and is expected to become effective on 1 August.

    News Round-up 7 July 2011

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