Slaughter and May advised NewDay on the issuance of £332,500,000 of sterling notes under NewDay’s master issuer asset-backed programme

Slaughter and May advised NewDay Cards Ltd (NewDay) and its affiliates in relation to an issuance under NewDay’s master issuer asset-backed notes programme within NewDay’s existing NDFT master trust structure, which constitutes NewDay’s first public Simple, Transparent and Standardised (STS) transaction. 
 
The notes comprised £332,500,000 of Series 2024-2 Floating Rate Asset-Backed Notes (the Series 2024-2 Notes) issued by NewDay Funding Master Issuer plc (the Issuer).
 
The Series 2024-2 Notes are ultimately backed by income from a portfolio of credit card receivables beneficially owned by NewDay Funding Receivables Trustee Ltd (the Receivables Trustee).
 
The Series 2024-2 Notes have been listed on the London Stock Exchange and comprise £177,800,000 Class A Notes (rated AAAsf (Fitch)/AAA(sf) (DBRS)), £25,200,000 Class B Notes (rated AA+sf/AA(sf)), £33,950,000 Class C Notes (rated A+sf/A(sf)), £57,050,000 Class D Notes (rated BBB+sf/BBB(sf)), £32,550,000 Class E Notes (rated BBsf/BB(sf)) and £5,950,000 Class F Notes (rated BB-sf/B(high)(sf)). The Class A, Class B, Class C, Class D and Class E Notes were publicly issued, whilst the Class F Notes were retained by NewDay Funding Transferor Ltd, an affiliate of NewDay. The Series 2024-2 Notes use compounded daily SONIA as the reference rate.
 
Under the securitisation structure, the Receivables Trustee has appointed NewDay as servicer in respect of the portfolio. Legal title to the receivables within the portfolio remains with NewDay Ltd, which is an authorised payment institution and a wholly-owned subsidiary of NewDay.
 
The issuance was arranged by Société Générale S.A.
 
Société Générale S.A., BNP Paribas, J.P. Morgan Securities Plc and MUFG Securities EMEA Plc acted as joint lead managers.
 
Morgan, Lewis & Bockius UK LLP provided US law advice to NewDay and its affiliates.
 
Clifford Chance provided English and US law advice to the joint lead managers and the arranger.