The securitisation was structured using Sterling Overnight Index Average (SONIA) in preparation for the end of LIBOR-based transactions in 2021.
Optimum Credit Limited has closed its third Residential Mortgage Backed Securities (RMBS) securitisation backed by 2nd Lien Residential Mortgage Loans.
The £274.8m deal, called Castell 2019-1, followed the successful placement of Optimum’s Castell 2017-1 and Castell 2018-1. Castell 2019-1 was structured using Sterling Overnight Index Average (SONIA) in preparation for the end of LIBOR-based transactions in 2021.
It was announced on Monday 2 September, with final pricing on 12 September. Strong demand saw oversubscription across all the tranches, senior 1.6 times and mezzanine greater than 2 times oversubscribed with pricing set tighter than initial guidance.
Barnaby Brand, finance director of Optimum Credit, said:“There was strong investor demand for this securitisation, which was over-subscribed in a competitive market against a very uncertain political backdrop.
"This is testament to the quality assets we are able to generate at Optimum Credit. Castell 2019-1 is our third securitisation and continues to support our diverse and sustainable funding strategy.”
