5 JUNE
2016
UK MORTGAGES LIMITED
(A closed-ended investment company incorporated in Guernsey with
registration number 60440)
Second Securitisation for UKML
The Board of UK Mortgages Limited and TwentyFour Asset
Management LLP (“TwentyFour”) are pleased to announce that Oat Hill
No.1 PLC has successfully completed the public sale of £477.1mm of
Triple-A rated bonds as expected. The securitisation is backed by a
pool of Buy-to-Let mortgages originated by Capital Home Loans
(“CHL”), purchased in February 2017
by UK Mortgages Corporate Funding Designated Activity Company
(“DAC”), the Acquiring Entity in which UKML has invested as
described in its prospectus dated 23rd June
2015.
The AAA notes were issued at a yield of 3m GBP LIBOR plus 0.85%, and provides 9.38x
initial net leverage on the Fund’s capital invested in this
transaction.
The issuer will seek Bank of England and European Central Bank eligible
status for the Class A notes.
Rob Ford, Partner at TwentyFour
said “We are very pleased with this transaction following a lot of
hard work both initially negotiating and arranging the purchase of
the pool and then structuring it into this securitisation.
The pricing reflects the high quality of the mortgages and the
conservative structure of the deal, as well as the improvement in
securitisation market pricing seen since the market lows following
the EU Referendum”.
Chris Waldron, Chairman of UKML
commented: “The Board is very pleased to see this transaction
price. Following last year’s successful inaugural securitisation,
Oat Hill No.1 is further proof of concept of UKML’s investment
proposition which gives the Fund’s investors the opportunity to
access the returns from this non-correlated asset class.”
Douglas Charleston, Portfolio
Manager at TwentyFour said “We have once again demonstrated that we
can successfully execute our business plan of purchasing mortgage
portfolios and structuring them into simple securitisations where
UKML’s investors can benefit from the enhanced returns this
delivers. We look forward to bringing further securitisations
to the market as our business grows”
The Board and TwentyFour expect to update the market on the fund
more broadly by way of a webinar and roadshow once the transaction
settles on 26th June.