Clients asking for an own securitization vehicle (own Issuer with Abalone as administrator/arranger)
Email 25.01.2021 / Milo
The structuring cost for Abalone is exactly the same whether we create a new securitisation vehicle or just a new compartment in an existing one, but as you recall you had decided for commercial reasons to charge more for a new vehicle that a compartment of an existing vehicle (35K vs 30K if not mistaken). Obviously then for a new vehicle additional costs will apply, such as the notary fees and RCS duties (and of course share capital contribution), which do not apply for a vehicle that already exists and where a new compartment only needs to be created. All these costs are specified in the standard fee proposal I had sent you.
If a paying agent is required, then Abalone would charge an extra 5K to take care of the initial due diligence process at umbrella level (something that does not apply in case of a compartment under A Securitization SA, when using the services of ISP).
In terms of running fees, if no paying agent is present these are exactly the same in both instances, i.e. 50 bps with a minimum of 30K or 35K. If a paying agent is required, then additional fee may apply depending on which one is the paying agent (so for instance if it is ISP, they normally charge 12K CHF p.a. at umbrella level, so for a new dedicated securitisation vehicle such cost will al fall on the same entity instead of being split among compartments as in the case of our vehicle A Securitization SA).
Plus for every new issuance a paying agent would charge a one-off issuance fee and an annual maintenance fee (to be agreed with the paying agent chosen, in the case of ISP pricing really varies from sec vehicle to sec vehicle, so not much sense to give the pricing applied to Abalone's vehicle).