UK Mortgages Ltd Oat Hill No. 2 Securitisation Launched and Priced
July 14 2020 - 2:00AM
UK Regulatory
TIDMUKML
UK Mortgages Ltd: Oat Hill No. 2 Securitisation Launched and Priced
THE INFORMATION IN THIS ANNOUNCEMENT IS RESTRICTED AND IS NOT FOR PUBLICATION,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.
14th July 2020
UK MORTGAGES LIMITED
(a closed-ended investment company incorporated in Guernsey with registration
number 60440)
LEI 549300388LT7VTHCIT59
Oat Hill No. 2 Securitisation Launched and Priced
The Board of UK Mortgages Limited ("UKML", or the "Company") and TwentyFour
Asset Management LLP ("TwentyFour") are pleased to announce that following the
announcement on Wednesday 8th July 2020, that the Company had mandated banks
and announced the public marketing of the Oat Hill No.2 securitisation, the
transaction was successfully launched and priced late on Friday afternoon 10th
July 2020.
This transaction refinances the previous Oat Hill No.1 deal that had originally
been intended to be completed in May 2020, but was delayed due to the market
disruption ensuing from the Covid-19 outbreak. TwentyFour and the Company are
extremely pleased that they are able to return to the pre-Covid-19 strategy at
the earliest opportunity.
This transaction will also allow the Company to return to its previously stated
proposal of using excess capital to enable share buybacks whilst the Company's
share price continues to trade at a discount to the NAV.
However, investors should note that the settlement date for this transaction is
timed to coincide with the next interest payment date of the previous Oat Hill
No.1 transaction at the end of August 2020, and so any capital released will
not be available until after then.
As previously stated, whilst securitisation spreads have retraced to such an
extent that a full securitisation became possible, they have not recovered to
the levels seen in February, prior to the Covid-19 outbreak, and therefore
whilst this transaction is expected to release a significant amount of capital,
that release will now most likely be around the lower of the previously stated
GBP30m - GBP50m range rather than the upper end as indicated in February. In the
immediate future, the Company and TwentyFour will be revising cashflow
forecasts, which will take into account financing the Company's contractual
lending commitments, along with the effects that income deferment from the
government's payment holiday scheme and its subsequent extension until at least
October this year might have on future capital availability, as well as
reviewing the previously reduced dividend.
Once this is completed, a further announcement will be made by the Company and
TwentyFour will host a video update or webinar to further inform investors on
timing and quantum.
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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