The deal,Preferred ’s first this year,is worth £400 million.
Preferred Residential Securities 05-1 (PRS 05-1)was structured in Euros and Sterling and was in high
demand -with all the classes being oversubscribed.The strength of the demand reflects Preferred ’s
improving position in the non-conforming market.Details of the bonds are as follows:
Class Size Rating (F/M/S&P)
A1a Euro 181.0 million AAA/Aaa/AAA
A2c Sterling 218.6 million AAA/Aaa/AAA
B1a Euro 7.0 million AA/Aa3/AA
B1c Sterling 22.6 million AA/Aa3/AA
C1c Sterling 10.8 million A/A2/A
D1c Sterling 15.8 million BBB/Baa2/BBB
E Sterling 3.4 million BB/Ba2/BB
This is the first securitisation to be announced under Preferred ’s new naming format;previous deals
were labelled PRS-1 through PRS-8.The new format of the name clearly shows that this is the first
deal of 2005.
The announcement follows a successful roadshow to investors in London,Dublin,Brussels and Paris.
George Patellis,Managing Director at Preferred,says:‘We recently held our second Investor Day at our Head Office,introducing potential investors to key members of staff and answering any questions they had about Preferred and the industry in general.As a result,several of the investors who bought bonds in PRS 05-1 were already knowledgeable about the investment and did not require a visit on the roadshow.We will continue to hold further Investor Days throughout 2005 ’.
Patellis continues:‘PRS 05-1 comes just eight months after our last securitisation,and we expect to be announcing at least one more deal before the end of the year.Preferred experienced a 38% increase in lending in 2004 and we intend to build on that success in 2005.’
