Together Successfully Completes 3rd RMBS at £332m.
Together Financial Services Limited
Together successfully completes third RMBS at £332 million
10th October 2019
Together Financial Services Limited ("Together" or the "Group"), one of the UK's leading mortgage and specialist loan providers, is pleased to announce the successful completion of its third residential mortgage backed securitisation ("RMBS"). The £332 million Together Asset Backed Securitisation 2019 - 1 PLC RMBS ("TABS 3") has a 95.0% advance rate and 79.0% of the issued notes were rated Aaa(sf) by Moody's and AAA(sf) by DBRS (the "AAA Notes"). The TABS 3 issuance, which will support the Group's future growth, was 1.5 times oversubscribed in the AAA Notes and AA Notes, and multiple times oversubscribed on the remaining classes of notes, receiving strong support from a wide range of institutions.
Commenting on the transaction, Gary Beckett, Group Managing Director and Chief Treasury Officer of Together, said: "We are delighted to announce the completion of our latest public RMBS, which further increases the scale, diversity, efficiency and maturity of our funding base. This is our third successful public RMBS in just over two years and the strong level of demand we received from investors, many of whom had invested in our two previous RMBS transactions, demonstrates the continued attractiveness of the Group's long-term growth story."
Since Together completed its inaugural public RMBS in September 2017, the Group has successfully raised or refinanced £3.7 billion of debt facilities to support its lending activities, adding significant additional depth and maturity to its funding structure and reducing the margin and improving the terms of each facility. TABS 3 is supported by a portfolio of 1st and 2nd charge owner-occupied and buy-to-let residential mortgages, secured against properties in England, Wales and Scotland, and refinances assets forming part of the Group's AA rated £1.25 billion Charles Street facility ("CABS"). TABS 3 complements the Group's existing two public RMBS transactions, four private securitisation facilities, senior secured notes and banking syndicate facility (RCF).
Together recently announced its full year results to 30 June 2019, showing a 19.4% growth in originations in the period to £2.0 billion, bringing its loan book to a new high of £3.69 billion, and achieving a profit before tax of £130.3 million.
Lloyds Bank Corporate Markets acted as Arranger and Joint Lead Manager accompanied by BNP Paribas, Natixis and NatWest Markets as Joint Lead Managers on TABS 3.
For further information:
|Together Financial Services|
|Mike Davies, Director of Corporate Affairs||07753 138 185|
Established in 1974, Together has been bringing common sense to the UK specialist lending market for 45 years. Our expertise in lending means we can look beyond mainstream lending criteria to take an individual view of customers' needs and treat each application on its own merits.
We offer a wide range of specifically designed products, including short-term finance, auction finance, residential, buy-to-let and commercial mortgages and secured loans through our established distribution network.
In 2019, we placed in the Sunday Times Top 100 Best Companies to Work For for the second year in succession and were also named in the Sunday Times Top Track 250 for the fourth year in a row. Together is the trading name of Together Financial Services Limited, which has its registered office address at Lake View, Lakeside, Cheadle, Cheshire SK8 3GW.
Further information about TABS 3
On 2 October 2019, TABS 3, a special purpose securitisation vehicle, priced the £332 million principal amount public RMBS transaction consisting of mortgage loans secured against residential properties in England, Wales and Scotland. The notes issued under TABS 3 will mature on the interest payment date falling in July 2061, with the optional redemption date on the interest payment date falling in September 2023, after which the margin on the rated notes issued by TABS 3 is set to increase. The mortgage loans were sold to TABS 3 by Together Personal Finance Limited and Together Commercial Finance Limited (as applicable). Certain of those mortgage loans were repurchased by Together Personal Finance Limited and Together Commercial Finance Limited from the Charles Street Securitisation facility immediately prior to being on-sold to TABS 3. The outstanding principal balance of the mortgage loans sold to TABS 3 is £332 million.
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