The Northview Group has announced a new securitisation.
The deal, known as Finsbury Square 2016-2, is the company’s second from its Finsbury Square shelf and is backed by £346m of mortgages (including 15% buy-to-let)originated under its Kensington Mortgages brand.
The portfolio has a weighted average seasoning of 3.8 months, a weighted average current LTV of 71%, and an average loan balance of £164,000. Citigroup, Bank of America Merrill Lynch and Deutsche Bank have been mandated as joint lead managers on the deal.
The Northview Group successfully placed the first Finsbury Square transaction in April this year, backed by £350m of very similar collateral. The class A was priced at 3m£L+150bps. The business says the new deal is expected to generate significant investor appetite, particularly given the quality of the assets and the limited new issue supply in the UK RMBS market in recent months, and is expected to price well inside the first deal.
This brings the total number of securitisations backed by Northview Group collateral since the acquisition of Kensington in January 2015 to seven and is the third one this year. The Northview Group has securitised assets in excess of £4 billion since the beginning of 2015.