Orrick Closes First UK Securitization Deal to be Awarded PCS Label


​Orrick has closed the first U.K. securitization to be awarded the new industry kitemark – the Prime Collateralised Securities ("PCS") label – designed to restore confidence in the securitization market by promoting quality, transparency and simplicity.

Orrick advised the arrangers – Bank of America Merrill Lynch, Crédit Agricole and UniCredit - on this auto loan deal valued at £300 million for FGA Capital UK (part of the Fiat Group) which specializes in financial services for the purchase and hire of Fiat Group motor vehicles and other leading brands. The deal offers investors triple A and single A rated tranches of sterling notes issued by A-BEST 8. As well as being the first U.K. deal to obtain the PCS label, the deal is also the first corporate originator deal to meet the standard.

The PCS initiative is aimed at reviving Europe’s asset-backed securities market by identifying for investors products that meet industry best practice criteria. Leading the deal for Orrick were structured finance senior associate Madeleine Horrocks and structured finance partner Michelle Taylor. Also on the Orrick team were structured finance associate Fiorenza Galloppa, tax partner Nick Thornton, tax senior associate Will Gay, financial services partner Sam Millar and associate Margarita Macfarlane.

“Orrick is proud to be at the forefront of this initiative in the U.K.," said Ms. Horrocks, who has worked on a large number of securitizations for FGA Capital Group. "We hope, along with the rest of the industry, that it will play a key role in defining and promoting standards of best practice in the European securitization market and restoring investor confidence in this type of product.”