ֳ

Non-Rating Action Commentary

No Impact on NewDay Funding Series 2018-2 Notes from Class A1 Reset

Fri 13 Nov, 2020 - 11:23 AM ET

ֳ-London-13 November 2020: ֳ does not expect to take any actions on the outstanding rated notes issued by NewDay Funding 2018-2 Plc following the Class A1 Reset Notice becoming effective.

If the notice becomes effective, the following changes will be made with respect to the class A1 notes:
-The class A1 scheduled redemption date will be reset so that it falls in December 2021 instead of December 2020.
-The class A1 margin will be amended.

The issuer will also enter into a new cross-currency swap agreement as a consequence of these changes.

ֳ has tested the impact of the amended rate of interest specified in the class A1 reset notice in its cash flow modelling. In our view, the ability of the series 2018-2 notes to achieve their currently assigned rating levels is not affected by the planned reset. ֳ has also reviewed the updated swap documents and considers currency risk adequately mitigated.

Upon receipt of the notice investors have the right to deliver a class A1 put notice, which would require the issuer to repurchase the affected notes of the investor serving the put notice. The issuer also reserves the right to revoke the notice at any time before 5 December 2020.

Contact:
Tom Deacon
Senior Analyst
+44 20 3530 1939
ֳ Limited
30 North Colonnade
London E14 5GN

Andy Brewer
Senior Director
+44 20 3530 1005

Media Relations: Athos Larkou, London, Tel: +44 20 3530 1549, Email: athos.larkou@thefitchgroup.com

Additional information is available on


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