The securitisation was led by Lehman Brothers and co-managed by HVB and NIB Capital Bank. It was sold in US dollars, sterling and euros. This is SPML’s largest securitisation to date.
Reflecting the high quality of the mortgage loan book and SPML's proven servicing ability, approximately £562.5 million of the total was given the highest rating of AAA, £31.5 million was rated BBB+ and £6 million was rated BB+. The AAA bonds benefit from a MBIA insurance policy that guarantees the payment of principal and interest. This is MBIA’s second insurance-wrapped issue with SPML.
SPML head of investor relations, Paul Rowbotham, commented “SPS 04-1 was our ninth and largest securitisation ever, being upsized to £600 million from an initial deal size of £550 million. The success of the transaction reflects well on SPML’s continued high quality loan origination, collections management systems and “five-star” servicing and its responsible attitude to the timing and structure of its securitisation deals”.
