Slaughter and May advised Aviva on disposal of a portfolio of equity release mortgages

Slaughter and May advised Aviva Equity Release UK Limited (Aviva) in relation to the disposal of a portfolio of equity release mortgage loans and the establishment of a securitisation vehicle, Highcrest SPV 1 PLC. The transaction involved the sale by Aviva Equity Release UK Limited of a portfolio of equity release mortgage loans secured over residential properties in England, Wales, Scotland and Northern Ireland (the Portfolio) to WEL Asset Origination LLC (the Retention Holder). The Retention Holder immediately on‑sold the Portfolio to Highcrest SPV 1 PLC (Highcrest). Highcrest issued Rule 144A Equity Release Mortgage Backed Fixed Rate Notes due December 2090 (the Notes), which are backed by receipts from the Portfolio. The Notes comprised an A0 variable funding note (rated Aaa (sf) by Moody’s / AAA (sf) by ARC), £57,523,000 Class A1 Notes (rated Aa2 (sf) / AA (sf)), £9,371,000 Class A2 Notes (rated Aa3 (sf) / AA- (sf)), £28,865,000 Class A3 Notes (rated A3 (sf) / A+ (sf)), £47,000,000 Class B0 Notes (rated Baa2 (sf) / A (sf)), and £40,000,000 Class C Notes (not rated). The Notes, other than the Class A0 note, were listed on the official list of the Vienna MTF. Under the securitisation structure, Highcrest appointed Aviva Equity Release UK Limited as servicer in respect of the Portfolio, while legal title to the Portfolio remains with Aviva Equity Release UK Limited. Lloyds Bank Corporate Markets acted as Arranger and Joint Lead Manager and Natixis acted as Joint Lead Manager. Slaughter and May represented Aviva Equity Release UK Limited with a team composed by: Oliver Wicker, Partner, Finance; Jennifer Nice, Associate, Finance.

Slaughter and May advised Aviva on disposal of a portfolio of equity release mortgages

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