Company name Marketplace Origin
Headline Notice to Noteholders


RNS Number : 8362N
Marketplace Origin Con Asset 2016-1
11 August 2017
 

Marketplace Originated Consumer Assets 2016-1 PLC
£114,000,000 Class A Floating Rate Asset-Backed Notes Due October 2024 (XS1488428332), £7,500,000 Class B Floating Rate Asset-Backed Notes Due October 2024 (XS1488428506), £7,500,000 Class C Floating Rate Asset-Backed Notes Due October 2024 (XS1488429066), £9,000,000 Class D Floating Rate Asset-Backed Notes Due October 2024 (XS1488429736) and £12,144,000 Class Z Variable Rate Notes Due October 2024 (XS1488429900) (together, the "Notes")

 

11 August 2017

Background

Notice is hereby given to holders of the Notes that on each Note Payment Date from (and including) the Note Payment Date falling in December 2016 to (and including) the Note Payment Date falling in June 2017 (the "Affected Note Payment Dates"), payments in respect of the principal amount of the Subordinated Loan have been made incorrectly by the Cash Manager and Calculation Agent pursuant to sub-paragraph (ii) of clause (o) in the Pre-Acceleration Interest Priority of Payments, such that the Subordinated Loan was repaid in full on the Note Payment Date falling in June 2017.

However, pursuant to Clause 5 of the Subordinated Loan Agreement, the principal amount of the Subordinated Loan shall be repaid only on the Final Maturity Date (i.e. the Note Payment Date falling in October 2024) to the extent of Available Funds.

Accordingly, the principal amount of the Subordinated Loan was repaid contrary to the terms of the Subordinated Loan Agreement and the Pre-Acceleration Interest Priority of Payments which, in turn, resulted in amounts being incorrectly applied in respect of the Pre-Acceleration Interest Priority of Payments.

In addition, and due to the repayment in full of the Subordinated Loan, the Pre-Acceleration Interest Priority of Payments and the Pre-Acceleration Principal Priority of Payments was incorrectly applied with respect to the Note Payment Date falling in July 2017.

Remedial action

In accordance with the Clause 8.2 of the Subordinated Loan Agreement, any amounts received in respect of the principal amount of the Subordinated Loan (the "Misapplied Funds") are held by the Subordinated Loan Provider as fiduciary for and on behalf of the Issuer. The Subordinated Loan Provider is required to forthwith deliver the Misapplied Funds directly to the Issuer for application in accordance with the Pre-Acceleration Interest Priority of Payments.

Accordingly, the Subordinated Loan Provider repaid the Misapplied Funds to the Issuer Payment Account on 25 July 2017. On 11 August 2017, the Cash Manager was instructed by the Issuer to (i) apply the Misapplied Funds in accordance with the Pre-Acceleration Interest Priority of Payments in respect of each Affected Note Payment Date and (ii) remedy the incorrect application of the Pre-Acceleration Interest Priority of Payments and the Pre-Acceleration Principal Priority of Payments in respect of the Note Payment Date falling in July 2017.

Following re-application of the Pre-Acceleration Interest Priority of Payments and the Pre-Acceleration Principal Priority of Payments as described above, the following payments or recalls in respect of the Notes will be made by the Cash Manager on behalf of the Issuer:

(i)         in respect of the Class A Notes:

(a)        an aggregate amount of £11,472.54 in respect of overpaid Class A Interest Amounts will be recalled from Class A Noteholders; and

(b)        an aggregate amount of £2,078,796.95 in respect of underpaid Class A Principal Amounts will be paid to Class A Noteholders; and

(ii)        in respect of the Class Z Notes, an aggregate amount of £1,625,070.28 in respect of underpaid Class Z Interest Amounts will be paid to Class Z Noteholders.

The Cash Manager and Calculation Agent has confirmed to the Issuer and the Trustee that no further remedial payments or recalls in respect of any other Class of Notes are required to be made in relation to the Misapplied Funds. However, an aggregate amount of £3,321.47 in respect of underpaid interest will be paid to the Subordinated Loan Provider.

The Trustee has not been requested by the Issuer or the Cash Manager to provide, and the Trustee has not provided, any consent or sanction in relation to the remedial action described above or any waiver in relation to the Misapplied Funds. The Trustee has reserved its rights, and the rights of the Noteholders, in relation to the Misapplied Funds and the related misapplication of the Pre-Acceleration Interest Priority of Payments and the Pre-Acceleration Principal Priority of Payments.

Capitalised terms used but not otherwise defined in this notice have the meanings given to them in Clause 1 of the master framework agreement dated 30 September 2016 relating to the Notes entered into between, amongst others, the Issuer, the Trustee and the Cash Manager and Calculation Agent.

Marketplace Originated Consumer Assets 2016-1 PLC
35 Great St. Helen's
London EC3A 6AP

 

 

 

This announcement has been issued through the Companies Announcement Service of

The Irish Stock Exchange

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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