Leek Finance Number Fourteen PLC (LFL14) closed on 28 October 2004. The total value of bonds issued was approximately £1.0 billion (sterling equivalent), bringing the overall total value of assets securitised to over £4.1 billion since 1996.
“As part of the strategy to diversify the investor base, LFL14 issued mortgage backed securities to over fifty investors in ten countries, over twenty of which are first time investors in the Leek programme. We are very pleased that despite the fact that LFL14 was our largest securitisation to date, the transaction was over subscribed and at the tightest levels for Platform loans” said Gerald Gregory, Managing Director, Britannia Capital Investment Group and main board director of Britannia Group
He added " We were very pleased with the teams from JP Morgan and RBS, who were joint arrangers, for their excellent work. Britannia is building a good reputation in this field”.
The mortgages sold to LFL14 included mortgage loans originated by Platform, Britannia’s non-conforming subsidiary lender and a portion of loans acquired from a third party. This is the sixth transaction since the acquisition of Platform by the Britannia Building Society Group.
LFL14 issued bonds in three currencies, in a variety of ratings, in Europe and the US. This is the third transaction in the Leek programme which has sold mortgage-backed securities into the US domestic market under the 144a private placement rules. In addition, The Leek programme introduced a 2a7 short term money market tranche, which achieved pricing of $US 1m Libor flat.
The transaction was oversubscribed with pricing at the tight end of price guidance and inside price guidance for the BBB rated subordinated tranche which was circa seven times oversubscribed. For this tranche, the margin achieved is the lowest in the sector, having broken through the 100 bps for the first time.
