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 £263.3mm 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