Strong Demand for NewDay’s Inaugural UK Credit Card ABS
NewDay, a newcomer to the U.K. securitization market, priced £293 million ($458 million) of bonds backed by credit card receivables last week.
The senior notes, issued from NewDay’s trust, NewDay Partnership Funding, priced at 75 basis points over one-month Libor, at the tight end of guidance, according to Standard & Poor’s. The notes are rated AAA’ by S&P and are structured with a weighted average life of three-years.
The originator provides store cards and general-use branded credit cards to U.K. retailers including Arcadia, Debenhams, House of Fraser, Laura Ashley, Asda, Comet and DFS. NewDay acquired the entire co-branded portfolio from Santander U.K. in 2013.
Royal Bank of Scotland arranged the transaction.