UK Mortgages Ltd Oat Hill 1 Refinancing and Securitisation Announcement
July 08 2020 - 4:25AM
UK Regulatory
TIDMUKML
UK Mortgages Ltd: Oat Hill 1 Refinancing and Securitisation Announcement
THE INFORMATION IN THIS ANNOUNCEMENT IS RESTRICTED AND IS NOT FOR PUBLICATION,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.
8th July 2020
UK MORTGAGES LIMITED
(a closed-ended investment company incorporated in Guernsey with registration
number 60440)
LEI 549300388LT7VTHCIT59
Refinancing of Oat Hill No.1 and Forthcoming Fifth Securitisation for UKML
The Board of UK Mortgages Limited ("UKML", or the "Company") and TwentyFour
Asset Management LLP ("TwentyFour") are pleased to announce that yesterday,
Tuesday 7th July 2020, UK Mortgages Corporate Funding Designated Activity
Company ("UK DAC") signed an agreement with Santander Corporate and Investment
Banking ("Santander") providing a senior backstop facility to enable UK DAC to
issue a call notice to redeem the outstanding notes of the Oat Hill No.1
transaction. That call notice was issued shortly before the close of business
yesterday and the notes will be redeemed on the next interest payment date in
August 2020.
As shareholders will be aware, this transaction was originally intended to be
refinanced on the first optional redemption date and previous interest payment
date in May, but the Company was unable to complete the refinancing at that
time due to the ongoing disruption from Covid-19. Yesterday's agreement now
allows that to take place at the first subsequent opportunity.
Furthermore, whilst securitisation spreads have not yet recovered to the levels
seen in February, prior to the Covid-19 outbreak, they have retraced to such an
extent that a full securitisation is now possible and therefore the Company and
TwentyFour are also pleased to announce that Oat Hill No.2, a public
securitisation refinancing the Oat Hill No.1 portfolio has been mandated to
Santander as Sole Arranger and Santander, along with BofA Securities and
Standard Chartered Bank as Joint Lead Managers and has been announced this
morning. Meetings are being offered to potential securitisation investors from
today and a transaction is expected to follow, subject to market conditions.
Once completed this transaction will allow the company to return to its
strategy as previously stated in February including using excess capital to
enable share buybacks whilst the Company's share price continues to trade at a
discount to the NAV.
An update will be provided to shareholders once the transaction has progressed.
TwentyFour Asset Management LLP
Rob Ford
Silvia Piva
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.
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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