Together Financial Services has priced a £409 million commercial mortgage-backed securitisation, completing its fourth capital markets transaction in four months.
The transaction, issued through Together Asset Backed Securitisation 2026-2 CRE-7 plc, is the lender’s seventh public small balance commercial real estate mortgage-backed securitisation.
The deal achieved a weighted average cost of 1.21% on placed notes at a 95% advance rate, with settlement expected on 28 October.
Approximately 83% of the issued notes are expected to receive AAA(sf) ratings from both Fitch and DBRS.
The securitisation is backed by mortgages secured against commercial, residential and mixed-use properties across England, Wales and Scotland. The portfolio comprises first and second charge loans, with first charge mortgages accounting for 98.2% of the total.
FUNDING PLATFORM EXPANSION
The transaction adds to Together’s existing funding arrangements, which include 12 public mortgage-backed securitisations, eight private securitisations, secured notes and a revolving credit facility.
The additional funding capacity will support the lender’s commercial property and SME lending activities.
Chris Adams, chief financial officer at Together, says: “The successful pricing of CRE7 marks our fourth transaction in four months, demonstrating the strength of our capital markets access and investor support.
“This £409 million transaction further diversifies our funding platform and provides additional capacity to support our commercial customers and SMEs across the UK.”
BNP Paribas and Lloyds Bank Corporate Markets acted as co-arrangers on the transaction.
Barclays, BNP Paribas, Citi, Lloyds Bank Corporate Markets and Natixis were joint lead managers.
