Warehoused loans VFN issue by Optimum One

Feb 2016: Moody's rated a VFN issue by UK 2nd charge mortgage lender. The A2 rated VFNs are supported by subordinated notes and were increased from £100m to £200m (in Sep), and in Nov £25m of Mezz notes were issued. 5% equity was maintained. The transaction has a revolving period to Jul 2018 whereby additional mortgages can be added to the pool. The issuer is an Optimum Group company.

Moody note here and here

VFNs - as part of a warehouse funding structure-are discussed in this note by Clifiord Chance here

British Business Bank (BBI) has been warehousing SME loan portfolios of mid-sized SME lenders (Hitachi Capital, Howard Henry, and LDF) and in return granting them lines of credit (that are 50% guaranteed by the European Investment Bank).

BBI intends to refinance these warehoused loans with a securitisation issue when the critical mass has been reached. Details of the Hitachi warehouse line and law firm Clifford Chance's press release (C Chance set up BIS's ENABLE warehouse programme) are here and here