BLUE MOTOR DEBUTS NEAR-PRIME UK
AUTO ABS AZURE
BLUE MOTOR FINANCE sold its debut securitisation
AZURE FINANCE NO.1 on Friday, pricing a near-
prime auto deal into a challenging sterling
market. The originator targets smaller dealer
groups lending to riskier borrowers.
“It’s an interesting space,” said one
investor. “[Blue Motor’s business is] a bit of a
BLACKûBOXûWHICHûTHEYûOPENûUPûAûLITTLEûINû
terms of what their origination criteria are
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The investor said he drew comfort from
the amortising nature of the underlying
loans and their recourse to physical assets.
And with the seniors having a short 1.2-year
average life, “what could go wrong in that
time? That’s half the story,” he said.
Joint leads Citigroup and Deutsche Bank had
to widen IPTs on those split-rated senior
notes - rated Aaa by Moody’s and AA by S&P -
to get the deal done.
The £242.7m tranche had IPTs on Monday
at mid 70s over one-month Libor, but an
update on Thursday afternoon reported the
tranche 0.9 times covered at 80bp. Final
pricing on Friday afternoon was 80bp with
the notes 1.1 times covered.
The £69.3m Aa2/A- Class B came 1.2 times
covered at 155bp after IPTs of mid 100s, the
£23.7m Baa1/BBB Class C was 1.4 times
covered at 215bp after low 200s IPTs, and
the £11m Ba1/BB+ Class D came 1.7 times
done at 300bp, in line with 300bp area IPTs.
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E which was retained, paying a 6% coupon, and
£40.2m of Class X notes rated Caa1/NR and pre-
placed at 350bp over one-month Libor.
The originator began lending in 2015.
Around 35% of the leases have APRs between
8% and 12%; 60% of the book comprises loans
with APRs of 15% to 19.9%; and 5% is for
loans with APRs of 24% to 29.9%.
The portfolio comprises 46,371 fully
amortising hire purchase auto loans with an
average current balance of £7,906 and a
weighted average nominal interest rate of 14.8%.
Moody’s pre-sale sale says some borrowers
“may previously have been on debt
management plans, received county court
judgements, or be in low level arrears on
other unsecured contracts”.
The average original term is 58 months,
the average remaining term is 50 months,
and almost all the loans - 98.1% of the
portfolio - are for used cars. Around 67% of
the pool comprises diesel vehicles.EMEA CLO
RICHMOND PARK CLO RESET VIA BNP
PARIBASBLACKSTONE/GSO priced a reset of RICHMOND
PARK CLO last week via arranger BNP
Paribas. The deal originally closed in January
2014.
The deal’s €321.9m AAAs came at
75bp over three-month Euribor. The
€18.5m AAs were at 150bp, the €13m
As were at 200bp and the €22.8m BBBs
at 305bp over. The €31m BB coupon was
515bp over and the €14.3m B was 735bp
over.
The structure also includes €15m AAs in
lXED
RATEûFORMATûPAYINGûû!ûõMû!!û
part pays 182bp over Euribor but with no
mOORûUNTILûTHEûAFTERûNON
CALLûPERIODûWHENûITû
switches to 150bp. A €21m A part pays
BPûOVERûWITHûNOûmOORûBEFOREûSWITCHINGûTOû
200bp.
There is a two-year non-call period and a
three-year reinvestment period.
Blackstone is buying a 55% stake in
Thomson Reuters’ Financial and Risk unit,
which includes IFR.NEW ASSET–BACKED SUMMARY DETAILS: WEEK ENDING 6/7/2018
Issuer Amount (m) WAL Coupon (%) Bookrunner(s) Rating Asset type
Azure Finance No. 1 £242.7 1.2 1mL+80bp Citi Bank/Deutsche Bank Aaa/AA/NR ABS
Azure Finance No. 1 £69.3 3.0 1mL+155bp Citi Bank/Deutsche Bank Aa2/A-/NR ABS
Azure Finance No. 1 £23.7 3.7 1mL+215bp Citi Bank/Deutsche Bank Baa1/BBB/NR ABS
Azure Finance No. 1 £11 3.9 1mL+300bp Citi Bank/Deutsche Bank Ba1/BB+/NR ABS
Azure Finance No. 1 £18.3 3.9 6.00 Citi Bank/Deutsche Bank B1/NR/NR ABS
Azure Finance No. 1 £40.2 0.6 1mL+350bp Citi Bank/Deutsche Bank Caa1/NR/NR ABS
Anchorage Capital CLO 8 US$26 6.3 1mL+210bp Deutsche Bank Securities A2/NR/NR CLO
Anchorage Capital CLO 8 US$312.5 3.7 1mL+100bp Deutsche Bank Securities Aaa/NR/AAA CLO
Anchorage Capital CLO 8 US$55 5.8 1mL+160bp Deutsche Bank Securities Aa2/NR/NR CLO
Anchorage Capital CLO 8 US$31.25 6.9 1mL+575bp Deutsche Bank Securities Ba3/NR/NR CLO
Anchorage Capital CLO 8 US$34.75 6.4 1mL+300bp Deutsche Bank Securities Baa3/NR/NR CLO
Bavarian Sky UK 2 £300 1.9 1mL+55bp HSBC Bank/Lloyds TSB Group Aaa/NR/AAA ABS
North Westerly V BV €248 5.5 3mE+91bp Morgan Stanley International Aaa/NR/AAA CLO
North Westerly V BV €21 7.1 3mE+155bp Morgan Stanley International Aa2/NR/AA CLO
North Westerly V BV €15 7.1 2.15 Morgan Stanley International Aa2/NR/AA CLO
North Westerly V BV €29.5 7.7 3mE+200bp Morgan Stanley International A2/NR/A CLO
North Westerly V BV €20.5 8.4 3mE+330bp Morgan Stanley International Baa2/NR/BBB CLO
North Westerly V BV €26 9.1 3mE+500bp Morgan Stanley International Ba/NR/BB CLO
North Westerly V BV €11.6 9.7 3mE+700bp Morgan Stanley International B2/NR/B- CLO
Richmond Park CLO €1.6 1.1 3mE+45bp BNP Paribas Aaa/NR/AAA CDO-CLO
Richmond Park CLO €321.9 4.4 3mE+75bp BNP Paribas Aaa/NR/AAA CDO-CLO
Richmond Park CLO €18.5 6.3 3mE+150bp BNP Paribas Aa2/NR/AA CDO-CLO
Richmond Park CLO €15 6.3 2.05 BNP Paribas Aa2/NR/AA CDO-CLO
Richmond Park CLO €23.1 6.3 3mE+150bp BNP Paribas Aa2/NR/AA CDO-CLO
Richmond Park CLO €13 7.1 3mE+200bp BNP Paribas A2/NR/A CDO-CLO
Richmond Park CLO €21 7.1 3mE+232bp BNP Paribas A2/NR/A CDO-CLO
Richmond Park CLO €22.8 7.2 3mE+305bp BNP Paribas Baa2/NR/BBB CDO-CLO
Richmond Park CLO €31 7.2 3mE+515bp BNP Paribas Ba2/NR/BB CDO-CLO
Richmond Park CLO €14.3 7.2 3mE+735bp BNP Paribas B2/NR/B- CDO-CLO