BSEC Firing on All “Cylinders” – Another ABS Auto Deal

BSEC announced another automobile related ABS deal. This time for Bassoul & Heneine.

This is the second ABS for B&H – "Cylinder II".

The structure is a mirror image of Rymco. And again the issuer is holding Tranche B.

Here's the earlier press release on Rymco Drive 1.   And earlier post.

Cylinder II has been terms - lower price and longer tenor.  This is probably reflective of a combination of things:  better market conditions and the fact that Rymco Drive was a debut issue.

BSEC also has issued some interesting publications on securitization and related issues in Lebanon.

Kudos again to the fine folks at the BEMO Group and the even finer distinguished banking family of Obegi.

Thor Asset Purchase (DEWA) Bond Holders Waive Acceleration

DEWA (Dubai Electricity and Water Authority) has issued a statement that payment on the Thor Asset Purchase Company ("TAPC") securities has not been accelerated.

TAPC is an asset backed security ("ABS") based on DEWA customer electricity receivables. 

Apparently, the transaction requires that DEWA maintain a Fitch rating above BBB or the purchasers have the right to demand early repayment.

Middle East Economic Digest ("MEED") has the fullest story I've seen to date. 

That is, in a nutshell, that the holders of TAPC waived the right to early repayment.  It's unclear whether the waiver was absolute or whether it was conditional.

First Asset Backed Securitization in Lebanon

Not strictly the GCC, but this is my blog and I have strong affection for Lebanon.

BEMO Securitization SAL announced the closing of Rymco Drive 1 for Rasamny Younis Motor Company ("RYMCO"),  Lebanon's authorized GMC, Nissan and Infiniti dealer.

This deal is a first for two reasons:

• It's the first auto receivable asset backed security ("ABS") in the country.  
• And the first term securitization under Law 705 of 2005.

The total transaction is for US$13.1 million, divided into two tranches:

• A senior tranche, Tranche A, at 77.5% of the transaction - roughly $10.5 million - with an average life of 3.7 years.
• A subordinated tranche, Tranche B, at 22.5% - roughly US$3.0 million-  to be retained by RYMCO which provides an effective first loss credit enhancement for Tranche A holders.

During the coming three year period, additional auto receivables may be incorporated into the structure resulting in US$40 million in aggregate funding for RYMCO.

The deal also includes some other protective features:  a funded cash reserve and an "excess" interest capture.

Congrats to BESC for a landmark deal.

And, as always, a pleasure to see the distinguished banking name, Obegi, in the press!