The securitisation consists of 88% first charge and 12% second charge mortgages from across its prime, light adverse and non-conforming loan product ranges. The securitisation was arranged and lead-managed by Lehman Brothers who were joined by DZ Bank AG as manager. It was sold in sterling and euros. This equals SPML’s largest ever securitisation to date.
Approximately £602 million equivalent (86.00%) of the total was rated AAA/Aaa/AAA, £45.50 million (6.50%) was rated AA/Aa2/AA, £26.25 million (3.75%) was rated A/A2/A, £22.75 million (3.25%) was rated BBB/Baa2/BBB and £3.50 million (0.50%) was rated BB/Ba1/BB by S&P, Moody’s and Fitch respectively.
SPML’s head of investor relations, Paul Rowbotham, commented “SPS 05-1 equalled our largest securitisation ever. We were able to act quickly to bring this deal in response to very strong investor demand. The transaction was notably oversubscribed and it was again particularly pleasing to have introduced a number of new, major investors to the SPML securitisation programme which has now seen over £4.1 billion of issuance. The success of the transaction reflects well on SPML’s continued high quality loan origination, “five-star” servicing and collections management systems and its responsible attitude to the timing and structure of its securitisation deals.”
