Santander U.K. has announced the capital structure for its new U.K. RMBS securitization deal, Holmes 2010-1 .
The trasaction will offer investors four triple-A rated tranches, rated by Moody's Investors Service, Standard & Poor's and Fitch Ratings. Class A1 is offerred as a hard bullet maturity and Class A2, A3 and A4 are offered with a scheduled amortization date.
Lead managers on the RMBS are Barclays Capital, Bank Of America Merrill Lynch, JPMorgan and Santander. The triple-A rated, €500 million ($694.89), Class A3 has been preplaced.
The A1 and A2 classes are denominated in U.S. dollars. The A4 class will be denominated in euros and the Class A5 notes will be offered as a sterling fixed-rate tranche, published reports have indicated.
The notes will be secured by a portfolio of U.K. prime, first-lien, owner occupied, residential mortgage loans. The mortgage portfolio balance is £14.05 billion ($22.54 billion). The weighted average current LTV is 66.04% for a weighted average seasoning of 50.92 months.
According to a presale report from Moody's, a unique feature of this transaction is that it has a redemption reserve for the pay down of existing notes although the Series 2010-1 do not have the benefit of this cash reserve.