Cadwalader Advises Premium Credit Limited on its Inaugural Public Issuance of GBP300 Million Notes Backed by Insurance Premia and Payment Plan Receivables

Jun 20, 2017

Contact(s)

Kimberly Brooks
New York
+1 212 504 5652
kimberly.brooks@cwt.com
Ron Brandsdorfer
New York
+1 212 504 6712
ron.brandsdorfer@cwt.com

Cadwalader has advised Premium Credit Limited on its inaugural public issuance of GBP300 million notes backed by its insurance premia and payment plan receivables. The transaction is notable for its deployment of an innovative master trust programme structure, a first for this asset class. The issuance was arranged by Lloyds Banking Group and Bank of America Merrill Lynch.

“Premium Credit’s master trust programme represents an evolution in UK consumer master trust transactions by uniquely altering the master trust to account for the specific characteristics of this asset class and to mitigate risk associated with industry events, including market consolidation,” explained capital markets special counsel Suzanne Bell.  In particular, this highly innovative structure allows Premium Credit to access the public market together with funding from an existing private warehouse and incorporates a number of additional features such as a double trust, a bespoke asset allocation mechanic and a novel excess concentration funding facility (including liquidity mechanics to re-allocate cash flows in the event of structural market changes).

“This is a very significant transaction for our client Premium Credit and demonstrates Cadwalader’s position as a ‘go-to’ firm for groundbreaking, market-first transactions,” said London capital markets partner Jeremiah Wagner.  

The Cadwalader team was led by Wagner and included Bell, tax partner Adam Blakemore, capital markets associates Michelle Chan and Oliver McBain, tax associate Catherine Richardson and trainee Anca Moldovan.

 

CadwaladerSpotlight

October 29-30 | SFIG Residential Mortgage Finance Symposium 2018

Chris Gavin will discuss “How to Value the RMBS 2.0 Market - Beyond Just Credit.”

Cadwalader's research and intelligence platform provides analysis on changes in U.S. financial regulation. Subscribers receive a daily newsletter interpreting new laws, rules and enforcement actions that impact financial institutions.