The Lloyds TSB Bank Plc sponsored hybrid conduit, Cancara Asset Securitization LLC, added a $120 million loan facility to its portfolio.
With this transaction, Cancara's program-level credit enhancement increased by 5% of its commitment, according to Moody's Investors Service.
Cancara has $11 billion in purchase commitments and $1.11 billion in program level credit enhancement.
The funding advanced by Cancara is backed by a first priority security interest in the remaining capital commitments from institutional and private investors to the fund.
The structure is overcollateralized and has various structural protections, such as a commercial paper tenor limitation of 65 days and stop issuance events to ensure that investors are protected in case of any deterioration in the performance of the assets.
The transaction is also partially supported by a liquidity facility provided by 'Prime-1'-rated Lloyds TSB.