UK Mortgages Ltd Investor Update

 
TIDMUKML 
 
THE INFORMATION IN THIS ANNOUNCEMENT IS RESTRICTED AND IS NOT FOR PUBLICATION, 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. 
 
30 September 2019 
 
                             UK MORTGAGES LIMITED 
 (a closed-ended investment company incorporated in Guernsey with registration 
                                 number 60440) 
                           LEI 549300388LT7VTHCIT59 
                                (the "Company") 
 
                                Investor Update 
 
At the recent EGM the Company's investors voted overwhelmingly to support the 
suggested amendments to the Company's Articles. 
 
Since the EGM, as a result of investor feedback, the Company would like to 
offer further insight into the Buyback Policy, and the expected implementation. 
 
As set out in the Circular[1] if a discount of greater than 5% persists the 
Board will not allow reinvestment of further capital, and instead will use 
surplus cash resources to buy back Ordinary Shares. Furthermore, TwentyFour 
Asset Management LLP (the "Manager") believes that while the Company is trading 
at a discount, repurchasing shares is a good way of offering value to investors 
and is instantly accretive, and the Manager would be entirely supportive of 
such a policy. 
 
Current expectations are that the Company will first be able to release excess 
cash in May 2020, as part of the refinancing of the Oat Hill 1 Portfolio, and 
that the amount released and available for buybacks will be between GBP30-50m. 
The range of cash released is dependent on certain factors including likely 
structure of the refinancing, cost of the debt issued at refinancing and 
prepayments, amongst others. 
 
The Board notes that this would be a material cash release relative to the 
current market capital of the Company. To the extent that the Buyback Policy 
does not narrow the discount the Board will continue to consult with 
shareholders. 
 
An update on the TwentyFour Closed-Ended Funds will take place on Wednesday 9 
October 2019. The update will be held at South Place Hotel at 12pm. The update 
will give investors the opportunity to hear from the portfolio managers on the 
three closed-ended funds; TwentyFour Select Monthly Income Fund, TwentyFour 
Income Fund and UK Mortgages Ltd. Each portfolio manager will discuss the 
outlook and opportunities for their fund and highlight how their views feed 
into positioning. 
 
Please contact TwentyFour on the below email address if you would like to 
attend. 
 
Events@twentyfouram.com 
 
Further information: 
 
TwentyFour Asset Management 
LLP 
Rob 
Ford 
020 7015 
8900 
 
Numis Securities Limited, Corporate 
Broker 
Hugh 
Jonathan 
Nathan 
Brown 
020 7260 1000 
 
 
Important notice: 
 
 
This announcement (the "Announcement") has been prepared for information 
purposes only, it is not a prospectus. It is issued by and is the sole 
responsibility of the Company. No representation, warranty, express or implied, 
is or  will be made to, or in relation to, and no responsibility or liability 
is or will be accepted by Numis Securities Limited ("Numis") or by any of its 
affiliates or agents as to or in relation to, the accuracy or completeness of 
this announcement or any other written or oral information made available to or 
publicly available to any interested party or its advisers, and any liability 
therefore is expressly disclaimed. 
 
Numis is authorised and regulated by the Financial Conduct Authority. Numis is 
acting for the Company as its sponsor, broker and financial adviser and is not 
acting for anyone else and will not be responsible to anyone other than the 
Company for providing the protections afforded to its clients nor for providing 
the protections afforded to customers of Numis. To the fullest extent permitted 
by law, recipients agree that Numis shall not have any liability (direct or 
indirect) for or in connection with this Announcement or any matters arising 
out of or in connection herewith. Numis has not authorised the contents of, or 
any part of, this document. 
 
The distribution of this announcement in certain jurisdictions may be 
restricted by law. Persons into whose possession this announcement comes are 
required by the Company, the Manager and Numis to inform themselves about, and 
to observe, such restrictions. 
 
Certain statements in this announcement are forward-looking statements which 
are based on the Company'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. 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, the Company 
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 Company, the Manager nor Numis assume any responsibility 
or obligation to update publicly or review any of the forward-looking 
statements contained herein. 
 
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 the Company involves a high degree of risk. 
 
[1] Sent to shareholders dated 26 July 2019, where it was stated that the Board 
does not intend to reinvest further capital other than in the re-financing of 
the existing portfolio, whilst the Company is trading at a discount in excess 
of 5 per cent. to Net Asset Value per Ordinary Share. Subject always to the 
Board determining that the Company has sufficient surplus cash resources 
available for the ongoing funding of the existing TML and Keystone investments, 
repayment of any existing credit facilities and any other foreseeable 
commitments, the Company intends to buy back Ordinary Shares at this level of 
discount. 
 
 
 
END
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