Lloyds Bank will offer two British pound sterling-denominated senior tranches in the upcoming, investor-placed, credit card ABS issued from its Penarth program.

The trust includes U.K. receivables arising under MasterCard, Visa and American Express revolving credit-card accounts originated by Bank of Scotland and Lloyds Bank.

Lloyds acquired BOS in December 2008, and established a “single management structure” that merged the banks’ credit card books.  

Moody’s Investors Service and Standard & Poor’s expect to rated the class A1 notes, due in 2018, ‘Aaa’/ ‘AAA’; and the class A2 notes, due in 2021, ‘Aaa’/ ‘AAA’. The tranches will be sized according to investor demand.

According to the S&P presale report, the notes are issued from a “delinked issuance platform,” which allows Penarth to issue different classes of rated notes at different intervals.  

The transaction involves a two-step debt issuance process: first the proceeds of the rated notes are sold to investors to finance the issuer's purchase of a global loan note; the cash is then used to acquire an undivided beneficial interest in the Penarth receivables trust.

As of Dec. 31, 2013, the trust's total size was £6.71 billion ($11.3 billion), according to S&P. This will be the 11th issuance from the trust, which currently has 10 classes of outstanding notes. 

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