SPA Holdings, which trades as Yes! Car Credit (YCC), has originated the first U.K. securitization structured entirely around U.K. subprime auto loans. The Royal Bank of Scotland (RBS) arranged the GBP108 million deal, and the RBS leveraged finance team has also provided YCC with a GBP20 million mezzanine financing.
Spartacus, a newly established company rated P-1/A-1 by Moody's and Standard & Poor's, bought auto loans from Direct Auto Financial Limited. Direct Auto is the subsidiary of YCC which provides loans. Spartacus will fund the purchase of the loans by means of a private placement. The assets will be put into the TAGS conduit, which will fund the purchase by issuing commercial paper. Spartacus will use collections on the underlying loans to repay the facility.