Together successfully completes third RMBS at £332 million

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.