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TORONTO, March 15, 2013 /CNW/ - JPMorgan Chase Bank, N.A. Toronto Branch, ("JPMorgan") the Administrative Agent for SCORE Trust (the "Trust") in respect of the Trust's $352,500,000 4.949% Credit Card Receivables-Backed Senior Notes, Series 2004-1 ("Series 2004-1 Senior Notes") and $22,500,000 5.629% Credit Card Receivables-Backed Subordinated Notes, Series 2004-1 ("Series 2004-1 Subordinated Notes") (together, the "Series 2004-1 Notes") has declared an Accumulation Commencement Date of May 1, 2013, which marks the beginning of the accumulation period for the Trust to accumulate amounts to pay the Series 2004-1 Notes. The Targeted Principal Distribution Date for the Series 2004-1 Notes is February 20, 2014. The Series 2004-1 Notes are the only series of notes issued by the Trust that are currently outstanding.
Pursuant to the terms of the transaction documents, during the accumulation period as the principal amount accumulates and is deposited in the Series 2004-1 Notes Accumulations Account, the amount of service charge collections allocated to Series 2004-1 Notes to pay funding costs and trust expenses will decrease. Pursuant to the definition of Excess Spread Percentage in the transaction documents, the Administrative Agent expects that a decrease in the service charge collections allocated to the Series 2004-1 Notes during the accumulation period could result in an Excess Spread Percentage of less than 3.00% (the "Excess Spread Trigger") for the September, 2013 settlement period or a later settlement period. A breach of the Excess Spread Trigger results in the automatic occurrence of an amortization event. If the Excess Spread Trigger is breached, an amortization event will occur on the first day of the calendar month following the month with respect to which the Excess Spread Trigger was breached. Based on the foregoing, it is possible an amortization event could occur as early as October 1, 2013.
In 2005, in connection with JPMorgan's acquisition of substantially all of the assets of Sears Canada Bank, JPMorgan acquired the rights and obligations of the Sears Canada Bank credit card receivables and as Seller, Servicer and Administrative Agent of the Trust. Under the transaction documentation, there is no action that may be taken by the Trust or by JPMorgan in its capacity as Seller, Servicer, or Administrative Agent of the Trust, to remedy the breach described above, if it should occur.
If an amortization event occurs and the amortization period commences, principal and interest will be paid on a monthly basis first to the holders of the Series 2004-1 Senior Notes and, when interest and principal has been paid in full to the holders of the Series 2004-1 Senior Notes, then principal and interest will be paid to the holders of the Series 2004-1 Subordinated Notes. If the amortization event occurs, it is anticipated that, based on forecasted collections on the Trust's receivables as determined by the Administrative Agent and amounts on deposit in the Series 2004-1 accumulation reserve account and Series 2004-1 reserve account, the Series 2004-1 Notes will be repaid in full by February 20, 2014. However, there can be no certainty that the Series 2004-1 Notes will be repaid in full on such date and, depending on Trust collections, the Series 2004-1 Notes could be repaid on an earlier or later date should such amortization event occur.
For further information regarding this amortization event and the repayment of the Series 2004-1 Notes that would occur as a result thereof, please refer to SCORE Trust's short form prospectus dated February 11, 2004 and the prospectus supplement thereto dated February 13, 2004 relating to the Series 2004-1 Notes.
For more information, please contact:
SOURCE: SCORE Trust
For further information:
JPMorgan Chase Bank, N.A. (Toronto Branch), as Administrative Agent for SCORE Trust
Telephone: (212) 270-6358