Slaughter and May advised NewDay Cards - debt issue under credit card master trust securitisation

Slaughter and May advised NewDay Cards Ltd (NewDay Cards) and its affiliates in relation to a public debt issue under its own-brand credit card securitisation.

The transaction involved the issuance, through a master trust structure, of £247.775 million of Series 2016-1 Floating Rate Asset Backed Notes (the Series 2016-1 Notes) by NewDay Funding 2016-1 Plc.

The Series 2016-1 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 2016-1 Notes have been listed on the London Stock Exchange and comprise £129.32 million Class A Notes (rated Fitch:AAAsf/DBRS:AAA(sf)), £18.815 million Class B Notes (rated AAsf/AA(high)(sf)), £27.825 million Class C Notes (rated Asf/A(high)(sf)), £37.895 million Class D Notes (rated BBBsf/BBB(high)(sf)), £20.14 million Class E Notes (rated BBsf/BB(high)(sf)) and £13.78 million Class F Notes (rated Bsf/B(high)(sf)). The Class A, Class B and Class C Notes were privately placed, whilst the Class D, Class E and Class F Notes were retained by Newday Funding Transferor Ltd, an affiliate of NewDay Cards. Bank of America Merrill Lynch, RBC Europe Limited, Santander Global Corporate Banking and Société Générale S.A., London Branch acted as joint lead managers.

Under the securitisation structure, the Receivables Trustee has appointed NewDay Cards 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 Cards.

The transaction was co-arranged by RBC Europe Limited and NewDay Cards.

Clifford Chance LLP provided English law advice to the joint lead managers and the co-arrangers.