UK Mortgages Ltd Oat Hill 1 Refinancing and Securitisation Announcement

 
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THE INFORMATION IN THIS ANNOUNCEMENT IS RESTRICTED AND IS NOT FOR PUBLICATION, 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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