UK Mortgages Ltd Inaugural Securitisation for UKML

 
TIDMUKML 
 
26/05/2016 
 
                             UK Mortgages Limited 
 (a closed-ended investment company incorporated in Guernsey with registration 
                                 number 60440) 
 
Inaugural Securitisation for UKML 
 
The Board of UK Mortgages Limited ("UKML") and TwentyFour Asset Management LLP 
("TwentyFour") are pleased to confirm that Malt Hill No.1 has successfully 
completed the public sale of GBP263.3mm of AAA-rated bonds as expected. The 
securitisation is backed by buy-to-let mortgages originated by Coventry 
Building Society Group ("Coventry") and purchased in November 2015 by UK 
Mortgages Corporate Funding Designated Activity Company ("DAC"), the Acquiring 
Entity in which UKML has invested as described in its prospectus dated 23 June 
2015 
 
The AAA notes were issued with a coupon of 3m LIBOR plus 1.35%, and provides 
6.8x leverage on the IPO proceeds that have been invested in this transaction 
 
Ben Hayward, Partner at TwentyFour Asset Management said "We are very happy to 
have placed the bonds and achieved this price point. It is a level that 
reflects the very defensive structure and low level of leverage in the 
transaction, as well as the very high quality of the mortgage pool, despite the 
uncertain pre-referendum market environment" 
 
Chris Waldron, Chairman of UKML commented: "The Board is very pleased to see 
this transaction price. Malt Hill No.1 provides term funding for DAC's 
ownership of the mortgage pool, and is proof of concept of UKML's (unique?) 
investment proposition that allows investors to access the returns from this 
non-correlated asset class." 
 
Silvia Piva, Portfolio Manager at TwentyFour said "With this transaction, we 
demonstrate that UKML's investment strategy is solid and its objectives 
achievable. We look forward to bringing further transactions to market as UKML 
and DAC continue to deploy their capital" 
 
For further information, please contact: 
John Magrath    +44 (0)20 7015 8900 
 
 
 
END

(END) Dow Jones Newswires

May 26, 2016 04:18 ET (08:18 GMT)

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