UK Mortgages Ltd Securitisation Announcement

 
TIDMUKML 
 
5 JUNE 2016 
 
UK MORTGAGES LIMITED 
 
(A closed-ended investment company incorporated in Guernsey with registration 
number 60440) 
 
Second Securitisation for UKML 
 
The Board of UK Mortgages Limited and TwentyFour Asset Management LLP 
("TwentyFour") are pleased to announce that Oat Hill No.1 PLC has successfully 
completed the public sale of GBP477.1mm of Triple-A rated bonds as expected. The 
securitisation is backed by a pool of Buy-to-Let mortgages originated by 
Capital Home Loans ("CHL"), purchased in February 2017 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 at a yield of 3m GBP LIBOR plus 0.85%, and provides 
9.38x initial net leverage on the Fund's capital invested in this transaction. 
 
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 transaction 
following a lot of hard work both initially negotiating and arranging the 
purchase of the pool and then structuring it into this securitisation.  The 
pricing reflects the high quality of the mortgages and the conservative 
structure of the deal, as well as the improvement in securitisation market 
pricing seen since the market lows following the EU Referendum". 
 
Chris Waldron, Chairman of UKML commented: "The Board is very pleased to see 
this transaction price. Following last year's successful inaugural 
securitisation, Oat Hill No.1 is further proof of concept of UKML's investment 
proposition which gives the Fund's investors the opportunity to access the 
returns from this non-correlated asset class." 
 
Douglas Charleston, Portfolio Manager at TwentyFour said "We have once again 
demonstrated that we can successfully execute our business plan of purchasing 
mortgage portfolios and structuring them into simple securitisations where 
UKML's investors can benefit from the enhanced returns this delivers.  We look 
forward to bringing further securitisations to the market as our business 
grows" 
 
The Board and TwentyFour expect to update the market on the fund more broadly 
by way of a webinar and roadshow once the transaction settles on 26th June. 
 
 
 
END

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