International Financing Review March 21 2020 39STRUCTURED FINANCEASSESSûTHEûIMPACTûOFûCORONAVIRUSûONû
THEûCOMPANYSûlNANCIALûPERFORMANCEû
and liquidity position for the next six
months.
!STONû-ARTINSûREVOLVINGûCREDITûFACILITYûISû
in effect fully drawn, and the company’s
cash position of £108m is mostly linked to
customer deposits and restricted cash in
China, said S&P.
Lucror Analytics analysts called the
rating action “slightly premature”.
h7EûEXPECTû#/6)$
ûTOûHAVEûAûMATERIALû
NEGATIVEûIMPACTûONûTHEûCOMPANYSûCARû
sales in 2020,” wrote analysts.
“At the same time, we note the strong
commitment of the Stroll consortium,
which, despite the slump in the share
PRICEûANDûTHEûACCELERATIONûOFûTHEû#/6)$
û
crisis, upsized the capital injection.”
!STONû-ARTINûREVISEDûITSûlNANCINGû
package on March 13 because its shares
fell below the issue price for its £317.2m
RIGHTSûISSUEûBEFOREûSUBSCRIPTIONûHADûEVENû
begun.
4HEûREVISEDûlNANCINGûPACKAGEûTOTALSû
aM ûWITHûTHEûRIGHTSûISSUEûCHIPPINGûINû
aMû!GAIN ûMAJORûSHAREHOLDERSûHAVEû
committed to support the deal in whole or
INûPARTû4HEûMOSTûSIGNIlCANTûNUMBERûISû
that the underwritten portion of the rights
ISSUEûRISESûTOûaMûFROMûaM
4HEûPROSPECTSûOFû!STONû-ARTINSûRECOVERYû
are largely contingent on its new model,
the DBX, said both sets of analysts.
Aston Martin also carries a Caa1 rating
WITHûAûNEGATIVEûOUTLOOKûFROMû-OODYS
Elsewhere in the market, S&P cut
Spanish gaming company Codere’s rating
to CCC+ from B–, citing increasing
RElNANCINGûRISKSûANDûEXPECTEDûOPERATINGû
performance deterioration thanks to
CORONAVIRUS
4HEûRATINGûHASûAûNEGATIVEûOUTLOOK ûANDû
could be downgraded if Codere is unable to
SUCCESSFULLYûRElNANCEûITSûUPCOMINGûDEBTû
maturities in the next six to 12 months,
engages in a restructuring transaction, or
if liquidity is inadequate, said analysts.
Codere is also rated B3 by Moody’s.
The company has two maturities
COMINGûUPûAûõMûûANDûAû
53Mû ûBOTHûMATURINGûINû
.OVEMBERû
The former was bid at 38 on Friday –
DOWNûFROMûûJUSTûOVERûTWOûWEEKSûBEFORE û
according to MarketAxess.
h)NûOURûVIEW ûTHEûCOMPANYûISûINûAû
precarious situation, with the majority of
ITSûBUSINESSûACTIVITIESûNOWûSHUTû;EXCEPTûINû
Mexico] or not operating at full capacity,”
wrote Lucror Analytics analysts.
h7EûBELIEVEûTHEûBLEAKûOPERATIONALû
outlook adds to Codere’s woes with regard
TOûTHEûRElNANCINGûOFûUPCOMINGû
maturities.”STRUCTURED FINANCE
EMEA MBS
AIB RETAINS IRISH RMBS BURLINGTON
MORTGAGES NO.1ALLIED IRISH BANK issued and retained a
€4.027bn Irish RMBS called BURLINGTON
MORTGAGES NO.1 last week. The mortgages
were originated and sold by AIB subsidiaries
%"3ûANDû(AVENû-ORTGAGES
BofA Securities arranged the deal, which is
structured to comply with STS.
4HEûPORTFOLIOûHOLDSû ûOWNER
OCCUPIEDûMORTGAGESûTOû ûBORROWERSû
Around one quarter of the pool was
originated before 2010, helping push out
THEûWEIGHTEDûAVERAGEûSEASONINGûTOûûYEARS
.ONEûOFûTHEûMORTGAGESûHAVEûBEENû
restructured or been in arrears at any point.EMEA ABS
ISSUERS RELY ON BIG BANKS TO DOWN
RISK AS SYNDICATION STOPSThe demise of European securitised deal
EXECUTIONûVIAûREGULARûPUBLICûSYNDICATIONûSAWû
Citigroup’s treasury take down the majority
of a UK auto ABS deal last week. Citi’s was
not dissimilar to JP Morgan’s treasury role in
ENSURINGûAû,ENDINVESTûBUY
TO
LETû2-"3û
getting across the line earlier this month.
It highlighted JP Morgan’s historic willingness
to take UK securitised risk when the price is right.
Sources say that since last summer JP Morgan
CHIEFûINVESTMENTûOFlCEûHASûBEENûPLAYINGûAûSIMILARû
role at key moments of market weakness.
“CIO is supporting clients but not
backstopping the market by any means,”
said one market source.
“They want to do their work and get a big
ALLOCATIONûANDûHAVEûTHEIRûRETURNûLOCKEDûIN vû
according to another source, who said deals
structured with warranties on lending
criteria would not work for the CIO.
“Unlike their big time 10 years ago, when
they were buying large blocks of billions of
pounds of prime RMBS, their bite size is smaller
now, because the deals are smaller,” he added.
There are at least 10 repeat securitisations
from UK originators, mainly specialist
LENDERS ûlLEDûATû#OMPANIESû(OUSEûTHATûAREû
YETûTOûBEûANNOUNCED ûBUTûSEVERALûOFûTHESEû
WOULDûBEûRElNANCINGSû)NûTHESEûCASESûTHEû
situation is probably quite straightforward –
calling an existing deal would make no
ECONOMICûSENSEûASûINVESTORSûWOULDûBEû
charging market prices that are far wider
than any coupon step-ups.“If you called a deal you’d just be calling
to a warehouse,” said a securitisation
banker. “Two to three weeks ago you would
HAVEûGOTûûORûûBANKSûTOûQUOTEûFORûYOUûnû
now it’s two or three at most, and they
would be charging at market prices that are
wider than step-ups.”
But the fate of those issuers with assets
stuck in banks’ warehouses is the big
question for the market. Two known deals
in the pipeline are a BTL RMBS Polaris and
another RMBS, called Canterbury Finance.
Last week’s auto ABS taken down by Citi
was DOWSON 2020-1 ûFROMûUSED
CARûlNANCEû
PROVIDERû/ODLEû&INANCIALû3ERVICES
The coupons for Oodle’s new issue were
SETûATûRELATIVELYûMODESTûPREMIUMSûTOûITSû
debut in September last year, although the
issue price was not disclosed. The £147.4m
#LASSû! ûFORûEXAMPLE ûCAMEûATûBPûOVERû
3ONIAûCOMPAREDûTOûSûBPûOVERû3ONIA
Citi had been mandated as arranger and
lead manager.
!NDûTHEûBANKûWASûINVOLVEDûINûTHEûLASTû5+û
SECURITISATIONûTOûBEûPLACEDûASûTHEûPANICûOVERû
CORONAVIRUSûSHUTûTHEûMARKETû4HATûDEAL ûBUY
TO
let trade CANADA SQUARE FUNDING 2020-1, was
backed by mortgages warehoused by Citi,
WHICHûPRIVATELYûPLACEDûTHEûBONDS ûONû-ARCHû
With no public new-issue market, any
deals hitting call dates are likely to be
extended. Earlier this week NEWDAY said the
call for its 2015 UK credit card and store card
ABS NEWDAY PARTNERSHIP FUNDING 2015-1 coming
up in April would be delayed by one year.
That deal was structured with a feature
explicitly permitting a one-year delay, but
margins on the bonds will still step up.GLENHAWK AGREES BRIDGING LOAN
ABS WITH JP MORGAN5+ûPROPERTYûBRIDGINGûLOANûPROVIDERû
GLENHAWK has agreed a securitisation funding
line with JP MORGAN ûTHEûlRSTûTIMEûTHEû53û
BANKûHASûINVESTEDûINûAûPRIVATEû!"3ûBACKEDû
by UK bridging loans.ALL EUROPEAN ISSUERS
BOOKRUNNERS: 1/1/2020 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)Includes securitisations, credit-linked notes (Euro, foreign, global and
domestics) and excludes CDOs.
Source: Refinitiv SDC code: B16n1 Lloyds Bank 8 1,751.81 13.0
2 Citigroup 7 1,603.64 11.9
3 Credit Agricole 2 1,514.09 11.2
4 BofA Securities 6 1,325.65 9.8
5 JP Morgan 4 1,091.33 8.1
6 Morgan Stanley 3 850.78 6.3
7 BNP Paribas 3 800.13 5.9
8 Barclays 5 790.89 5.9
9 Commerzbank 1 576.20 4.3
10 ING 1 576.20 4.3
Total 26 13,481.046 IFR Bonds 2325 p 23 - 45 .indd 39 20 / 03 / 2020 19 : 59 : 41