THE INFORMATION IN THIS ANNOUNCEMENT IS RESTRICTED AND IS NOT
FOR PUBLICATION, RELEASE OR DISTRIBUTION DIRECTLY OR INDIRECTLY IN
OR INTO OR FROM THE UNITED STATES,
CANADA, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA, THE REPUBLIC OF IRELAND OR JAPAN.
30 September 2019
UK MORTGAGES LIMITED
(a closed-ended investment company incorporated in Guernsey with
registration number 60440)
LEI 549300388LT7VTHCIT59
(the “Company”)
Investor
Update
At the recent EGM the Company’s investors voted overwhelmingly
to support the suggested amendments to the Company’s Articles.
Since the EGM, as a result of investor feedback, the Company
would like to offer further insight into the Buyback Policy, and
the expected implementation.
As set out in the Circular[1] if a discount of greater than 5%
persists the Board will not allow reinvestment of further capital,
and instead will use surplus cash resources to buy back Ordinary
Shares. Furthermore, TwentyFour Asset Management LLP (the
“Manager”) believes that while the Company is trading at a
discount, repurchasing shares is a good way of offering value to
investors and is instantly accretive, and the Manager would be
entirely supportive of such a policy.
Current expectations are that the Company will first be able to
release excess cash in May 2020, as
part of the refinancing of the Oat Hill 1 Portfolio, and that the
amount released and available for buybacks will be between
£30-50m. The range of cash released
is dependent on certain factors including likely structure of the
refinancing, cost of the debt issued at refinancing and
prepayments, amongst others.
The Board notes that this would be a material cash release
relative to the current market capital of the Company. To the
extent that the Buyback Policy does not narrow the discount the
Board will continue to consult with shareholders.
An update on the TwentyFour Closed-Ended Funds will take place
on Wednesday 9 October 2019. The
update will be held at South Place Hotel at 12pm. The update will give investors the
opportunity to hear from the portfolio managers on the three
closed-ended funds; TwentyFour Select Monthly Income Fund,
TwentyFour Income Fund and UK Mortgages Ltd. Each portfolio manager
will discuss the outlook and opportunities for their fund and
highlight how their views feed into positioning.
Please contact TwentyFour on the below email address if you
would like to attend.
Events@twentyfouram.com
Further information:
TwentyFour Asset Management
LLP
Rob
Ford
020 7015
8900
Numis Securities Limited, Corporate
Broker
Hugh
Jonathan
Nathan
Brown
020 7260 1000
Important notice:
This announcement (the “Announcement”) has been prepared
for information purposes only, it is not a prospectus. It is issued
by and is the sole responsibility of the Company. No
representation, warranty, express or implied, is or will be
made to, or in relation to, and no responsibility or liability is
or will be accepted by Numis Securities Limited (“Numis”) or
by any of its affiliates or agents as to or in relation to, the
accuracy or completeness of this announcement or any other written
or oral information made available to or publicly available to any
interested party or its advisers, and any liability therefore is
expressly disclaimed.
Numis is authorised and regulated by the Financial Conduct
Authority. Numis is acting for the Company as its sponsor, broker
and financial adviser and is not acting for anyone else and will
not be responsible to anyone other than the Company for providing
the protections afforded to its clients nor for providing the
protections afforded to customers of Numis. To the fullest extent
permitted by law, recipients agree that Numis shall not have any
liability (direct or indirect) for or in connection with this
Announcement or any matters arising out of or in connection
herewith. Numis has not authorised the contents of, or any part of,
this document.
The distribution of this announcement in certain jurisdictions
may be restricted by law. Persons into whose possession this
announcement comes are required by the Company, the Manager and
Numis to inform themselves about, and to observe, such
restrictions.
Certain statements in this announcement are forward-looking
statements which are based on the Company’s expectations,
intentions and projections regarding its future performance,
anticipated events or trends and other matters that are not
historical facts. These statements are not guarantees of future
performance and are subject to known and unknown risks,
uncertainties and other factors that could cause actual results to
differ materially from those expressed or implied by such
forward-looking statements. References herein to potential future
returns or distributions are targets and not forecasts and there
can be no guarantee or assurance that they will be achieved. Given
these risks and uncertainties, prospective investors are cautioned
not to place undue reliance on forward-looking statements.
Forward-looking statements speak only as of the date of such
statements and, except as required by applicable law, the Company
undertakes no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise. The information contained in this
announcement is subject to change without notice and neither the
Company, the Manager nor Numis assume any responsibility or
obligation to update publicly or review any of the forward-looking
statements contained herein.
This announcement does not constitute or form part of and may
not be construed as an offer to sell, or an invitation to purchase,
investments of any description, nor as a recommendation regarding
the possible offering or the provision of investment advice by any
party. No information in this announcement should be construed as
providing financial, investment or other professional advice and
each prospective investor should consult its own legal, business,
tax and other advisers in evaluating any investment opportunity. In
particular, an investment in the Company involves a high degree of
risk.
[1] Sent to shareholders dated 26 July
2019, where it was stated that the Board does not intend to
reinvest further capital other than in the re-financing of the
existing portfolio, whilst the Company is trading at a discount in
excess of 5 per cent. to Net Asset Value per Ordinary Share.
Subject always to the Board determining that the Company has
sufficient surplus cash resources available for the ongoing funding
of the existing TML and Keystone investments, repayment of any
existing credit facilities and any other foreseeable commitments,
the Company intends to buy back Ordinary Shares at this level of
discount.