Together refinances CABS securitisation

Together has refinanced its revolving Charles Street securitisation programme (CABS).

The CABS facility now solely funds the lender’s term loans secured against residential property.

Bridging loans will be fully financed through the group’s other securitisations and senior secured notes. 

‘CABS 1’ was first launched in 2007 as a £500m revolving securitisation facility and, in 2014, it was increased to £675m, before growing to £1bn in 2016 and £1.25bn in 2018. 

Due to the number of amendments, Together has closed down CABS 1 and re-issued it as a new facility, ‘CABS 2’. 

The senior advance rate for the £1.25bn facility has been increased, with the rating of the senior notes reaffirmed at AA. 

The total advance rate also grew, with the immediate release of up to £23m of equity to be used to support the group’s continued growth strategy.

It has also extended the facility’s maturity to March 2027. 

“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,” said Gary Beckett, group managing director and chief treasury officer of Together. 

“This facility continues to support our RMBS issuance programme, along with providing further depth to our funding profile and, in turn, supporting our future growth plans.”

Over the past 15 months, the finance provider has raised or refinanced over £4bn of facilities across 10 transactions, including senior secured note issuances and private and public securitisations.

In January, the business doubled its DABS bridging facility to £400m

In its results for the quarter to 31st December 2021, Together reported an 11.7% uptick in average monthly originations to £199.9m from the previous quarter, bringing its loan book to £4.4bn.

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