26th May 2016 12:59
LONDON (Alliance News) - OneSavings Bank PLC on Thursday said it is selling its entire interest in the Rochester Financing No.1 PLC securitisation for no less than GBP95 million in cash.
Morgan Stanley will purchase the C, D and E notes and will also launch a formal auction process for the class F notes and residual certificates issued by Rochester 1.
OneSavings said the transaction is expected to generate an exceptional pretax gain of at least GBP25 million, which will be used in part to support additional net loan book growth in 2016 which is now expected to be marginally ahead of previous guidance of 20%.
"This transaction provides strong evidence of our ability to acquire and manage high quality loan portfolios and deploy capital to generate strong shareholder returns. We have a disciplined investment and disposal process and we will continue to evaluate opportunities as they arise to supplement the ongoing organic growth opportunities we have in front of us," Chief Executive Andy Golding said in a statement.
Shares in OneSavings were trading up 4.1% at 320.00 pence on Thursday afternoon.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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