Silk Road amends draft documents under consent solicitation for asset-backed notes

By Jennifer Chiou

New York, Dec. 18 - Silk Road announced that it has made amendments to the draft documents in connection with the consent solicitations for several series of its mortgage-backed or asset-backed notes.

As reported, Silk Road Finance No. 1 plc began a consent solicitation for its £2.5 billion of 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 is soliciting consents for its €500 million of class Aa mortgage-backed floating-rate notes due 2054 and £275 million of 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.

And, Silk Road Finance No. 3 plc began a consent solicitation for its £650 million of 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.

As stated in a prior news release, 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.

As already reported, Leek Finance is also soliciting consents for several series of its notes, and the final voting deadline is 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 ABS_London_Syndicate@jpmorgan.com) and Royal Bank of Scotland plc (attn: liability management group, 44 207 085 8806/9972, or 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 leek@lucid-is.com). The principal paying agent is HSBC Bank plc (attn: senior manager, CT client services, corporate trust and loan agency).

The solicitations began on Dec. 5.

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