UKML.L Regulatory News (UKML)

UK Mortgages Ltd - Third Securitisation Announcement

PR Newswire

London, June 21

21 June 2018

UK MORTGAGES LIMITED(a closed-ended investment company incorporated in Guernsey with registration number 60440)LEI 549300388LT7VTHCIT59

Third Securitisation for UKML

The Board of UK Mortgages Limited (“UKML) and TwentyFour Asset Management LLP (“TwentyFour”) are pleased to announce that Malt Hill No.2 PLC has successfully completed the public sale of £317.5mm of Triple-A rated bonds as expected. The securitisation is backed by a pool of Buy-to-Let non-member mortgages originated by Coventry Building Society (“Coventry”) through its Godiva brand, and purchased in June 2018 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 with a coupon of 3m GBP LIBOR plus 0.75%, with the estimated IRR from this transaction at 6.41%. 

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 second transaction in our Malt Hill securitisation programme of Coventry-originated loans, and the third securitisation from UKML. The pricing reflects the demand for such a high quality pool of mortgages in securitised form and the conservative structure of the deal, as well as the improvement in securitisation market pricing seen since the first transaction two years ago.”

Silvia Piva, Portfolio Manager at TwentyFour said “We are pleased to be able to bring to market a third public securitisation, which further to being backed by an extremely high quality portfolio, confirms UKML’s proposition to be a regular, non-opportunistic, issuer within the UK RMBS market.”

Further informationTwentyFour Asset Management LLPSilvia Piva020 7015 8900Numis Securities Limited, Corporate BrokerNathan BrownHugh Jonathan020 7260 1000