UKML Uk Mortgages Limited

UK Mortgages Ltd: Oat Hill 1 Refinancing and Securitisation Announcement

THE INFORMATION IN THIS ANNOUNCEMENT IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION DIRECTLY OR INDIRECTLY IN OR INTO OR FROM THE UNITED STATES, CANADA, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA, THE REPUBLIC OF IRELAND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.

8^th July 2020

UK MORTGAGES LIMITED
(a closed-ended investment company incorporated in Guernsey with registration number 60440)

LEI 549300388LT7VTHCIT59

Refinancing of Oat Hill No.1 and Forthcoming Fifth Securitisation for UKML

The Board of UK Mortgages Limited (“UKML”, or the “Company”) and TwentyFour Asset Management LLP (“TwentyFour”) are pleased to announce that yesterday, Tuesday 7^th July 2020, UK Mortgages Corporate Funding Designated Activity Company (“UK DAC”) signed an agreement with Santander Corporate and Investment Banking (“Santander”) providing a senior backstop facility to enable UK DAC to issue a call notice to redeem the outstanding notes of the Oat Hill No.1 transaction. That call notice was issued shortly before the close of business yesterday and the notes will be redeemed on the next interest payment date in August 2020.

As shareholders will be aware, this transaction was originally intended to be refinanced on the first optional redemption date and previous interest payment date in May, but the Company was unable to complete the refinancing at that time due to the ongoing disruption from Covid-19. Yesterday’s agreement now allows that to take place at the first subsequent opportunity.

Furthermore, whilst securitisation spreads have not yet recovered to the levels seen in February, prior to the Covid-19 outbreak, they have retraced to such an extent that a full securitisation is now possible and therefore the Company and TwentyFour are also pleased to announce that Oat Hill No.2, a public securitisation refinancing the Oat Hill No.1 portfolio has been mandated to Santander as Sole Arranger and Santander, along with BofA Securities and Standard Chartered Bank as Joint Lead Managers and has been announced this morning. Meetings are being offered to potential securitisation investors from today and a transaction is expected to follow, subject to market conditions.

Once completed this transaction will allow the company to return to its strategy as previously stated in February including using excess capital to enable share buybacks whilst the Company’s share price continues to trade at a discount to the NAV.

An update will be provided to shareholders once the transaction has progressed.

TwentyFour Asset Management LLP

Rob Ford
Silvia Piva
020 7015 8900

Numis Securities Limited, Corporate Broker
Nathan Brown
Hugh Jonathan
020 7260 1000

Important notice

This announcement has been prepared for information purposes only, it is not a prospectus.

The distribution of this announcement in certain jurisdictions may be restricted by law. Persons into whose possession this announcement comes are required by the UKML, TwentyFour and Numis to inform themselves about, and to observe, such restrictions.

Recipients of this announcement who are considering acquiring New Shares in UKML are reminded that any such acquisition must be made only on the basis of the information contained in the Prospectus and any supplementary prospectus(es) thereto which may be different from the information contained in this announcement.  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 UKML involves a high degree of risk and prospective investors should read the section in the Prospectus entitled "Risk Factors" for further information.