NewDay Cards Ltd’s First SONIA-linked Debt Offering

Slaughter and May advised NewDay Cards Ltd and its affiliates in relation to a public debt issue under its own-brand credit card securitisation.

The transaction involved the issuance, through a master trust structure, of £285 million of Series 2019-1 Floating Rate Asset Backed Notes (the Series 2019-1 Notes) by NewDay Funding 2019-1 Plc (the Issuer). The issuance was the first issuance by NewDay Cards to make use of compounded daily SONIA as the interest reference rate. The Series 2019-1 Notes have been listed on the London Stock Exchange and comprise £149.7 million Class A Notes (rated AAAsf/AAA(sf)), £23.1 million Class B Notes (rated AAsf/AA(high)(sf)), £33.9 million Class C Notes (rated Asf/A(sf)), £42.3 million Class D Notes (rated BBBsf/BBB(sf)), £23.7 million Class E Notes (rated BBsf/BB(sf)) and £12.3 million Class F Notes (rated B+sf/B(high)(sf)). The Class A, Class B, Class C and Class D Notes were publicly issued, whilst the Class E and Class F Notes were retained by Newday Funding Transferor Ltd, an affiliate of NewDay Cards.

Under the securitisation structure, the Receivables Trustee has appointed NewDay Cards as servicer in respect of the portfolio. Legal title to the receivables within the portfolio remains with NewDay Ltd, which is an authorised payment institution and a wholly-owned subsidiary of NewDay Cards.

NewDay Cards is a financial services company specialising in providing credit products to consumers in the United Kingdom. The company was established in 2000.

The Slaughter and May team was led by Partner Richard Jones (Picture) and included associates David Thomas and Christopher McCabe; Tax Partner Gareth Miles with associate Alex Sim; Partner Ben Kingsley and associate Emily Bradley.

Morgan, Lewis & Bockius UK LLP provided US law advice to NewDay Cards and its affiliates.

Clifford Chance provided English and US law advice to the joint lead managers and the co-arrangers.

Involved fees earner: Emily Bradley – Slaughter and May; Richard Jones – Slaughter and May; Ben Kingsley – Slaughter and May; Christopher McCabe – Slaughter and May; Gareth Miles – Slaughter and May; Alex Sim – Slaughter and May; David Thomas – Slaughter and May;

Law Firms: Slaughter and May;

Clients: NewDay Cards;