Zenith Service has taken on the role of Master Servicer for the securitization transaction on the portfolio of Consum.it, a company in the MPS Group whose area of operation is the issue of personal loans which can be paid off with Italian salary-based employee loan repayments.
The transaction
In this transaction, which was completed at the end of December 2013 through the Arianna SPV vehicle, Zenith took on all the fundamental roles (Sevicer, Corporate Servicer and Calculation Agent). Zenith also made available an information technology platform for the full management of the portfolio, and devoted a fully independent and segregated autonomous unit to it. The additional roles Zenith has taken on are those of Calculation Agent and Representative of the Noteholders. The key data concerning the transaction follow below:
The portfolio
The 39,700 credit lines, which amount to around euro 580 million, are divided into Italian salary-based employee loan repayments (88.5%) and salary deductions / deducted at source for the remaining 11.5% of the portfolio. The borrowers number 38,306, more than 78% of which are public administration employees or pensioners. The portfolio as a whole was considered to be of low risk profile by the rating agencies; the reasons for this are the type of credit which is famously performing, the insurance coverage which by law helps individual credit lines, the structure, and the great experience gained by Zenith Service which is a leading company in this specific segment.
The securities
The securities are divided into the three classes of Senior, Mezzanine and Junior, are fixed rate (with the exception of the Junior securities), are rated by Moody’s and DBRS, and have all (including the Junior tranche) been subscribed by institutional investors (leading national and international banks and a foreign fund). The transaction was structured by Phoenix Investment Partners and Banca IMI, and allowed total deconsolidation. The legal part of it was managed by the law firm Simmons & Simmons.
