Issued all in sterling, the bonds were rated by Fitch and Moody’s in a combination of triple A, single A, triple B and double B. The lead manager for BMF4 was Deutsche Bank and all tranches were substantially oversubscribed leading to excellent spreads throughout. Commercial First’s latest issue brings the total of its four securitisations to date to more than £3/4bn, with a fifth planned later in 2006.
Commercial First’s managing director, Philip George, explained: “The overall pricing achieved was our lowest ever, as was the cash reserve required on the transaction. There was a wide spread of investors, all of whom were hugely impressed by the business model; the performance of the business (both originations and customer management); the margins; and the security.”
Sales and marketing director, Stephen Johnson, said: “BMF4 is the most efficient securitisation deal in our history and has created substantially more demand than its predecessors. At a time when others have found securitisations difficult, the success of this latest deal gives us added confidence in our strategy of offering simple commercial mortgages, and in our ability to pursue our ambitious growth plans successfully while continuing to offer our introducers first rate products and service.”
