UK Mortgages Ltd New Warehouse Lending Facility for TML
August 06 2019 - 4:35AM
UK Regulatory
TIDMUKML
UK Mortgages Ltd: New Warehouse Lending Facility for The Mortgage Lender
("TML")
THE INFORMATION IN THIS ANNOUNCEMENT IS RESTRICTED AND IS NOT FOR PUBLICATION,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.
6 August 2019
UK MORTGAGES LIMITED
(a closed-ended investment company incorporated in Guernsey with registration
number 60440)
LEI 549300388LT7VTHCIT59
New Warehouse Lending Facility Completed for The Mortgage Lender ("TML")
The Board of UK Mortgages Limited (the "Company") and TwentyFour Asset
Management LLP are pleased to announce that the Company has completed the
arrangement and signing of a new warehouse facility arranged by HSBC Bank plc,
called Cornhill Mortgages No.5 Limited. This will fund the forward flow
purchases of newly originated owner-occupied residential mortgage loans from
the Company's ongoing arrangement with TML following the completion of the
pre-funding phase of the Barley Hill No.1 securitisation from earlier this
year, which concludes in August. The transaction is intended to fund portfolio
growth to a size suitable for a further public securitisation into what will
then be expected to be the second Barley Hill transaction.
Unlike the previous forward flow warehouse for TML loans arranged in 2016
(which was fully capitalised from the outset as TML, whilst operated by a
highly experienced lending and management team, was a new lender at that time,
and furthermore UKML's the Company's capital position was then at a large
surplus) this transaction employs a far more efficient incremental
capitalisation structure, similar to that employed with last year's Cornhill 4
transaction. This new structure will allow the Company to maximise the
efficiency of capital deployment and therefore leverage, minimising the cost of
undrawn commitment fees. Swaps hedging will also be with HSBC Bank plc, a Aa2
(cr)/AA- rated (Moody's/S&P) counterparty.
Performance of the original loan pool has been extremely strong with just 4
loans from over 1350 more than 3 months in arrears at the end of June 2019, and
with a low weighted average Loan-to-Value ratio of 67.9%. Whilst lending
criteria are likely to evolve on an ongoing basis in response to changing
trends and needs in mortgage markets, the risk profile of the new portfolio is
expected to remain broadly similar to the previous one. Furthermore, after
slower than expected initial lending growth, primarily due to the effects of
the post-Brexit-vote extraordinary monetary policy measures introduced just
after TML began operating, TML have more recently been successfully growing
their origination volumes, with July 2019 being a record month for both
applications and completions.
Further information:
TwentyFour Asset Management LLP
Rob Ford
Douglas Charleston
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.
Certain statements in this announcement are forward-looking statements which
are based on UKML's expectations, intentions and projections regarding its
future performance, anticipated events or trends and other matters that are not
historical facts. These statements are not guarantees of future performance
and are subject to known and unknown risks, uncertainties and other factors
that could cause actual results to differ materially from those expressed or
implied by such forward-looking statements. TwentyFour's estimate of the
potential gross IRR for this investment is calculated based on certain
scenarios and subject to certain assumptions. This and any other references
herein to potential future returns or distributions are targets and not
forecasts and there can be no guarantee or assurance that they will be
achieved. Given these risks and uncertainties, prospective investors are
cautioned not to place undue reliance on forward-looking statements.
Forward-looking statements speak only as of the date of such statements and,
except as required by applicable law, UKML undertakes no obligation to update
or revise publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.
The information contained in this announcement is subject to change without
notice and neither the UKML, TwentyFour nor Numis assume any responsibility or
obligation to update publicly or review any of the forward-looking statements
contained herein.
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.
END
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