Leek, Silk Road begin six consent solicitations to amend mortgage-, asset-backed notes

By Susanna Moon

Chicago, Dec. 5 - Leek Finance and Silk Road began several consent solicitations for series of mortgage-backed or asset-backed notes.

The companies are proposing to amend the notes to add the following:

• Entry into back-up cash management and backup administration arrangements, changes related to the implementation of the backup arrangements;

• The amendment of an existing perfection event so that it will be triggered by the transfer of the servicing of the loans away from Platform Funding Ltd.;

• A change to the definition of authorized investments to allow for the issuer to invest in authorized investments that have a maturity date no later than the earlier of 100 days from the date the authorized investment is entered into and the interest payment date following the date of the investment;

• A change to the provisioning policy such that upon the occurrence of a perfection event relating to the portfolio, the provisioning shall be, as at each calculation date, the greater of (a) the amount provisioned for as at the calculation date immediately prior to the event and (b) an amount equal to 40% of the aggregate principal balance of loans, which are six months or more in arrears; and

• Amendments to the transaction documents in order to facilitate that the trustee must agree to any modification to the conditions of the notes, which are necessary for the issuer to comply with regulations.

Consent solicitations

In the first solicitation, Silk Road Finance No. 1 plc began a consent solicitation for its outstanding £2.5 billion class A1 asset-backed floating-rate notes due 2052.

The noteholder meetings will begin at 5 a.m. ET on Dec. 27.

The final voting deadline is 5 a.m. ET on Dec. 24.

In the second solicitation, Silk Road Finance No. 2 plc began a consent solicitation for its outstanding €500 million class Aa mortgage-backed floating-rate notes due 2054 and £275 million class Ab mortgage-backed floating-rate notes due 2054.

The noteholder meetings will begin at 5:20 a.m. ET on Dec. 27 in London.

The final voting deadline is 5:20 a.m. ET on Dec. 24.

In the third solicitation, Silk Road Finance No. 3 plc began a consent solicitation for its outstanding £650 million class A asset-backed floating-rate notes due 2055.

The noteholder meetings will begin at 5:40 a.m. ET on Dec. 27 in London.

The final voting deadline is 5:40 a.m. ET on Dec. 24.

In the fourth solicitation, Leek Finance No. 17 plc began a consent solicitation for its outstanding

• £270 million class A2a mortgage-backed floating-rate notes due 2037;

• $462 million class A2b mortgage-backed floating-rate notes due 2037;

• €365 million class A2c mortgage-backed floating-rate notes due 2037

• €105.6 million class Mc mortgage-backed floating-rate notes due 2037;

• £22 million class Ba mortgage-backed floating-rate notes due 2037;

• €39.5 million class Bc mortgage-backed floating-rate notes due 2037; and

• €48 million class Cc mortgage-backed floating-rate notes due 2037;

The noteholder meetings will begin at 5 a.m. ET on Jan. 3 in London. Holders must be of record as of 5 p.m. ET on Dec. 4.

The final voting deadline is 5 a.m. ET on Dec. 31.

In the fifth solicitation, Leek Finance No. 18 plc is soliciting consents for the following mortgage-backed floating-rate notes:

• £171.1 million class A2A mortgage-backed floaters due 2038;

• $475 million class A2B mortgage-backed floaters due 2038;

• €128 million class A2C mortgage-backed floaters due 2038;

• $350 million class A2D mortgage-backed floaters due 2038;

• £12,5 million class MA mortgage-backed floaters due 2038;

• €83,7 million class MC mortgage-backed floaters due 2038;

• £25,9 million class BA mortgage-backed floaters due 2038;

• €26 million class BC mortgage-backed floaters due 2038;

• £6 million class CA mortgage-backed floaters due 2038; and

• €49 million class CC mortgage-backed floaters due 2038.

The noteholder meetings will begin at 6:20 a.m. ET on Jan. 3 in London. Holders must be of record as of 5 p.m. ET on Dec. 4.

The final voting deadline is 6:20 a.m. ET on Dec. 31.

In the sixth solicitation, Leek Finance No. 19 plc is soliciting consents for the following mortgage-backed floating-rate notes:

• £110 million class A2A mortgage-backed floaters due 2038;

• $624.1 million class A2B mortgage-backed floaters due 2037;

• €124.5 million class A2C mortgage-backed floaters due 2038;

• £23 million class MA mortgage-backed floaters due 2038;

• €68 million class MC mortgage-backed floaters due 2038;

• £12 million class BA mortgage-backed floaters due 2038;

• €51 million class BC mortgage-backed floaters due 2038;

• £6 million class CA mortgage-backed floaters due 2038;

• €32 million class CC mortgage-backed floaters due 2038;

• £13 million class DA mortgage-backed floaters due 2038; and

• €6 million class C mortgage-backed floaters due 2038.

The noteholder meetings will begin at 7:40 a.m. ET on Jan. 3 in London. Holders must be of record as of 5 p.m. ET on Dec. 4.

The final voting deadline is 7:40 a.m. ET on Dec. 31.

The solicitation agents are J.P. Morgan Securities plc (attn: fixed-income syndicate, fax +44 0 20 7777 9153, phone +44 0 20 71342468 or email ABS_London_Syndicate@jpmorgan.com) and Royal Bank of Scotland plc (attn: liability management group, +44 207 085 8806/9972, or email liabilitymanagement@rbs.com). The tabulation agent is Lucid Issuer Services Ltd. (attn..: Paul Kamminga/Victor Parzyiagla, +44 20 7704 0880, fax +44 20 7067 9098 or email leek@lucid-is.com). The principal paying agent is HSBC Bank plc (attn: senior manager, CT client services, corporate trust and loan agency).

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