UK Mortgages Ltd Oat Hill No. 2 Securitisation Launched and Priced

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THE INFORMATION IN THIS ANNOUNCEMENT IS RESTRICTED AND IS NOT FOR PUBLICATION, 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