NewDay kicks off U.K. credit card securitization issuance this year with its NewDay Partnership Funding 2015-1, a securitization of credit card debt the issuer acquired from Santander in 2013.
The deal follows the successful launch of the issuer’s inaugural deal in mid December 2014.
Standard & Poor’s assigned preliminary ratings to the deal. The so-far unsized transaction will offer AAA’-rated class-A notes; AA’-rated class-B notes; A+’-rated class C; two tranches of BBB+’-rated notes and BB’-rated class F notes. Series 2015-1 is scheduled to revolve for five years.
The issuer plans to offer a series of variable funding note concurrently with the securitization that will not be rated by S&P.
NewDay provides store cards and general-use branded credit cards to U.K. retailers including Arcadia, Debenhams, House of Fraser and Laura Ashley. The portfolio is sized at £757 million ($1.2 billion) as of December 2014. The average account balance is £3,124 and borrowers have been paying on average for four years, according to the S&P presale report.
NCL, previously known as SAV Credit Ltd., an entity within the NewDay group,services the portfolio. NCL only assumed full operational control of the servicing business in August 2014, according to S&P. However, NCL has been managing the portfolio's credit risk since its acquisition in May 2013 through a transitional servicing agreement with Santander UK.