Frankfurt, 21 November 2005 – LAWFUEL – The Law News Network – Baker & McKenzie LLP announced today that it advised DaimlerChrysler Bank* and the arrangers: Société Générale S.A. and Fortis Bank NV/SA, on a EUR 700 million securitization of auto loan receivables.
To enable this first auto-loan securitization to take place under new securitization laws in Luxembourg, a special purpose vehicle – Silver Arrow SA, was established. Under the Silver Arrow Compartment No. 1, two tranches amounting to Euro 648 million and 53 million were placed successfully on the European capital market. The portfolio covers about 50,000 automobile loans with an average volume of Euro 14,100.
Dr. Mark Odenbach, banking & finance partner at Baker & McKenzie said: ” Silver Arrow SA is DaimlerChrysler Group’s new European securitization platform for auto loans and leasing receivables and enables the 21 international subsidiaries of DaimlerChrysler Financial Services AG to securitize auto loans and leasing receivables and bring them to the capital market.
“DaimlerChrysler opted for a securitization vehicle based in Luxembourg rather than the German TSI (True Sale Initiative) platform, as securitization law in Luxembourg allows the establishment of separate compartments for various transactions within the securitization vehicle. Also, the TSI platform would not have provided for a trade tax neutral securitization of leasing receivables.”
Banking and finance advice was provided by lead partner Dr. Mark Odenbach alongside partner Dr. Dietmar Helms and associates Swantje Claussen, Sandra Schöniger, Shenghze Wang and Martin Kaiser – all from the Firm’s Frankfurt office. Tax advice was provided by Christian Brodersen, also from the Frankfurt office. Paul-Michael Rebus, Gavin Raftery, Roger James and Carter Brod, all based in the London office, advised on UK and US law.
Laurent Lazard of Bonn Schmitt Steichen, Luxembourg, advised on Luxembourg law. JP Morgan – advised by Clifford Chance Frankfurt (Arne Klüwer, Kirti Vasu) – provides a number of services to the securitization platform.
*DaimlerChrysler Bank is a subsidiary of DaimlerChrysler Financial Services AG