UKML Uk Mortgages Limited

 
TIDMUKML 
 
UK Mortgages Ltd: Highly Successful Securitisation Completed for Keystone 
Portfolio 
 
THE INFORMATION IN THIS ANNOUNCEMENT IS RESTRICTED AND IS NOT FOR PUBLICATION, 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. 
 
18 January 2021 
 
UK MORTGAGES LIMITED 
(a closed-ended investment company incorporated in Guernsey with registration 
number 60440) 
 
  549300388LT7VTHCIT59 
 
LEI 549300388LT7VTHCIT59 
 
Investment update 
 
UK Mortgages Ltd: Highly Successful Securitisation Completed for Keystone 
Portfolio 
 
18 January 2021 
 
The Board of UK Mortgages Limited ("UKML") and TwentyFour Asset Management LLP 
("TwentyFour") are pleased to announce that the launch and pricing of Hops Hill 
No.1 PLC, the debut securitisation of a portfolio of first ranking, Buy-to-Let 
mortgage loans originated by Keystone Property Finance ("Keystone"), was 
completed on Friday afternoon following two and a half days of roadshow 
meetings and a further two days of book building. 
 
The transaction, the first UK RMBS deal to be launched in 2021, was a major 
success. Practically, the deal has been ready for launch since early November 
last year, but as the year-end approached and the resolution of a number of 
broader uncertainties became apparent, such as the approval and roll-out of 
vaccines, it became strategically beneficial to hold off until the new year. 
 
This also allowed the portfolio to grow further as ongoing origination flowed 
into the pool of loans, thus also allowing for a larger transaction. Rather 
than the £350m originally envisaged last year, we were able to come to market 
with a transaction totalling £400m. This includes £63m of pre-funding loans - 
essentially allowing the deal to incorporate loans currently in the pipeline 
but not yet completed - the first deal to contain this feature since the start 
of the pandemic. 
 
The deal saw strong demand from a broad range of investors, and notably many 
more than have typically been seen in recent transactions, with the book 
building to over 3.4x oversubscription for the senior notes and more than twice 
that for the mezzanine classes. This allowed pricing to be tightened by an 
impressive 15bp from initial guidance on the senior notes, which were priced at 
a spread of Sonia+95bp, while the mezzanine notes were also tightened by 25bp 
or more during the process. 
 
Much of this demand was driven by the exceptional quality of the loan portfolio 
that Keystone has originated - loans not previously seen as an entire 
transaction by securitisation investors - as highlighted by the exceptional 
performance of the pool during the payment holiday period last year. 
 
Moreover the overall improvement of nearly 20bp achieved by the transaction 
compared to the level anticipated when the board and manager met with investors 
last year, will significantly improve the expected returns for the fund, once 
the pre-funding is completed at the first Interest Payment Date in May. Further 
details on these returns and the securitisation will be presented to investors 
in early February. 
 
Chris Waldron, UKML's chairman said: "This is an excellent deal for UKML and 
will make an important contribution to meeting the revised goals we set during 
our strategic review late last year." 
 
Rob Ford, portfolio manager at TwentyFour, said: "We are delighted with the 
outcome of this transaction, which saw unprecedented investor demand 
highlighting the high quality of the loan pool and securitisation structure. 
Additionally, the outstanding pricing performance combined with the larger deal 
size will further increase returns for UKML shareholders. We will now move on 
immediately to the task of finalising the follow-on warehouse to enable the 
company to build the next portfolio that will ultimately form Hops Hill No. 2." 
 
Further information: 
 
TwentyFour Asset Management LLP 
Rob Ford 
020 7015 8900 
 
Numis Securities Limited, Corporate Broker 
Nathan Brown 
Hugh Jonathan 
020 7260 1000 
 
 
 
END 
 
 

(END) Dow Jones Newswires

January 18, 2021 05:41 ET (10:41 GMT)

Uk Mortgages (LSE:UKML)
Historical Stock Chart
From Aug 2024 to Sep 2024

Uk Mortgages (LSE:UKML)
Historical Stock Chart
From Sep 2023 to Sep 2024