Together raises £500m in latest issuance

Cheadle-based specialist mortgage and secured loans provider, Together Financial Services, has issued £500m of 5.25% senior secured notes, due in 2027.

The issue is through its wholly-owned subsidiary Jerrold FinCo.

Following significant demand, the aggregate principal amount of the offering was increased to £500m, from the previously announced amount of £450m.

The gross proceeds are expected to be used to redeem, in full, the issuer’s £350m in aggregate principal amount of 6 1/8% senior secured notes due 2024, to reduce drawn balances under the CABS Securitisation, general corporate purposes and to pay associated fees and expenses.

Group chief executive designate, Gerald Grimes, said: “We are delighted to announce the completion of our £500m bond issuance, our second successful fund raising transaction during the pandemic.

“The issuance, which was upsized by £50m on the back of strong investor support, provides additional headroom as we continue to shape our business for an exciting future.”

Gary Beckett, group managing director and chief treasury officer at Together, said: “This issuance follows the success of our fourth and largest public RMBS (Residential Mortgage Backed Securities) in July, as we continue to diversify and add depth of maturity to our funding platform to support our lending ambitions.

“As a mature issuer we were delighted to be the first company to issue a sterling bond in 2021 and since formal completion of the Brexit process.

“The transaction received strong demand from high quality investors and was multiple times over-subscribed.”

Citigroup and Goldman Sachs International acted as joint bookrunners with respect to the issuance of the notes.