Together refinances CABS securitisation

The senior advance rate for the £1.25bn facility had been increased, with the rating of the senior notes reaffirmed at AA. The group said the total facility advance rate had also increased, allowing for an equity release of up to £23m toward Together’s growth strategy.

Gary Beckett, group managing director and chief treasury officer, said: “The successful refinancing of our CABS securitisation on significantly improved terms is a testament to the continued strength of Together’s business and in particular, the strong performance of our residential mortgage backed assets.” 

Extending the maturity to 2027, the group said, would add depth to Together’s funding profile, increasing the weighted average maturity from 3.3 years to 3.9 years on amounts currently drawn, and up to 3.3 years on a fully drawn basis.

The refinancing simplifies the group’s funding structure, it said, with the CABS facility now solely financing term loans secured against residential property. Bridging loans will now be fully financed through Together’s other securitisations and the senior secured notes.

CABS 1 was launched in 2007 as a £500m revolving securitisation facility. In 2014, the facility was increased to £675m and obtained AA ratings from Moody’s and DBRS, before being extended to £1bn in 2016 and £1.25bn in 2018. Because of the number of amendments the group decided to close CABS 1 and re-issue it as CABS 2.

Over the past 15 months, Together said it had raised or refinanced more than £4bn of facilities across 10 transactions, including senior secured note issuances and private and public securitisations.

Together recently reported £199.9m originations during Q4, a rise of 11.7 per cent from Q3. It said its loan book reached a record £4.4bn with underlying profit before tax in Q4 of £43m.