UK Mortgages Ltd - Update on redemption of Oat Hill No.1
PR Newswire
London, May 27
UK Mortgages Ltd: Update on the redemption of Oat Hill No.1
THE INFORMATION IN THIS ANNOUNCEMENT IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION DIRECTLY OR INDIRECTLY IN OR INTO OR FROM THE UNITED STATES, CANADA, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA, THE REPUBLIC OF IRELAND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.
27thMay 2020
UK MORTGAGES LIMITED
(a closed-ended investment company incorporated in Guernsey with registration number 60440)
LEI 549300388LT7VTHCIT59
Refinancing of Oat Hill No.1
The Board of UK Mortgages Limited ("UKML") and the Portfolio Manager, TwentyFour Asset Management LLP ("TwentyFour") would like to notify shareholders of an RNS issued to Oat Hill No.1 bondholders today. The purpose of the RNS was to inform bondholders that the securitisation will not be redeemed on its first refinancing call date of 27th May 2020.
The transaction was not called at the first opportunity as due to the Covid-19 situation, financing markets were only available at relatively expensive levels which did not reflect the quality of the underlying portfolio, and despite a general improvement since April, the Portfolio Manager and the Board believe that better opportunities are likely in the months ahead. Oat Hill No.1 is callable every quarter so it was deemed prudent to wait with the existing financing remaining in place. However, conversations regarding the refinancing of the transaction are continuing and both bondholders and UKML shareholders will be updated on progress on the matter as soon as appropriate, given the improving market backdrop.
The Company can confirm that the existing funding of the deal remains secure, as the current Oat Hill securitisation can remain outstanding, albeit at an increased cost. This will allow the Company to revisit the securitisation refinancing or other funding options in the future, as the deal is able to be refinanced on any future quarterly interest payment date.
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.
