UK Receivables Trusts - Non-Contractual Support

 

TIDM81CL 
 
RNS Number : 5451H 
Chester Asset Recs Deals 2004-1 PLC 
23 February 2010 
 
                  Chester Asset Receivables Dealings 2004-1 PLC 
 
Announcement by Chester Asset Receivables Dealings 2004-1 PLC ("CARDS 2004-1]") 
in respect of (a) subscription by MBNA of (i) a note issued by Chester Asset 
Receivables Dealings 2009-1 Limited ("CARDS 2009-1") which has subscribed for a 
loan note issued by Deva One Limited, an existing beneficiary of UK Receivables 
Trust II ("UKRT II"), and (ii) a loan note issued by Deva Three Limited, a 
beneficiary of UKRT II; (b) the purchase of defaulted receivables by CARDS 
2009-1 from Credit Cards Securitisation Europe Limited (the "Trust II 
Receivables Trustee") and (c) the assignment of receivables by MBNA to the Trust 
II Receivables Trustee at a discount. 
 
Date: 23 February 2010 
 
In order to provide support for the outstanding series under UKRT II, including 
Series 2004-1 issued by CARDS 2004-1, (the "Referenced Series"), MBNA has 
implemented a transaction pursuant to which  it has subscribed for a zero coupon 
note issued by CARDS 2009-1 ("Series 2009-1") and a zero coupon loan note issued 
by Deva Three Limited (the "Series 2009-2 Loan Note").  Both the note issued by 
Series 2009-1 and the Series 2009-2 Loan Note will be contractually subordinated 
to the Referenced Series such that any finance charge collections and, in 
certain circumstances, principal collections allocated to these series will be 
applied towards making up losses to the Referenced Series. 
As part of this transaction MBNA, the Trust II Receivables Trustee and each of 
the beneficiaries of UKRT II have entered into a defaulted receivables purchase 
agreement pursuant to which defaulted receivables will be purchased from the 
Trust II Receivables Trustee by CARDS 2009-1.  The effect of the defaulted 
receivables purchase agreement will be to decrease the amount of defaults 
allocated to outstanding issuances under UKRT II and thereby increase 
enhancement for the outstanding issuances under UKRT II. 
MBNA has agreed, pursuant to the terms of the existing Receivables 
Securitisation Agreement, for UKRT II, to assign receivables to the Trust II 
Receivables Trustee at a price less than principal par.  The assignment at a 
discount is expected to increase finance charge collections in UKRT II and 
thereby increase the amount of yield available to existing issuances under UKRT 
II 
Should you require further information, please contact: 
The Directors 
Tel: [phone] 
 
 
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