UK Mortgages Ltd - Securitisation Announcement

5 JUNE 2016

UK MORTGAGES LIMITED

(A closed-ended investment company incorporated in Guernsey with registration number 60440)

Second Securitisation for UKML

The Board of UK Mortgages Limited and TwentyFour Asset Management LLP (“TwentyFour”) are pleased to announce that Oat Hill No.1 PLC has successfully completed the public sale of £477.1mm of Triple-A rated bonds as expected. The securitisation is backed by a pool of Buy-to-Let mortgages originated by Capital Home Loans (“CHL”), purchased in February 2017 by UK Mortgages Corporate Funding Designated Activity Company (“DAC”), the Acquiring Entity in which UKML has invested as described in its prospectus dated 23rd June 2015.

The AAA notes were issued at a yield of 3m GBP LIBOR plus 0.85%, and provides 9.38x initial net leverage on the Fund’s capital invested in this transaction. 

The issuer will seek Bank of England and European Central Bank eligible status for the Class A notes.

Rob Ford, Partner at TwentyFour said “We are very pleased with this transaction following a lot of hard work both initially negotiating and arranging the purchase of the pool and then structuring it into this securitisation.  The pricing reflects the high quality of the mortgages and the conservative structure of the deal, as well as the improvement in securitisation market pricing seen since the market lows following the EU Referendum”.

Chris Waldron, Chairman of UKML commented: “The Board is very pleased to see this transaction price. Following last year’s successful inaugural securitisation, Oat Hill No.1 is further proof of concept of UKML’s investment proposition which gives the Fund’s investors the opportunity to access the returns from this non-correlated asset class.”

Douglas Charleston, Portfolio Manager at TwentyFour said “We have once again demonstrated that we can successfully execute our business plan of purchasing mortgage portfolios and structuring them into simple securitisations where UKML’s investors can benefit from the enhanced returns this delivers.  We look forward to bringing further securitisations to the market as our business grows”

The Board and TwentyFour expect to update the market on the fund more broadly by way of a webinar and roadshow once the transaction settles on 26th June.

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