Trinidad Mortgage lacks holder votes to amend mortgage sale agreement

By Susanna Moon

Chicago, Oct. 2 – Trinidad Mortgage Securities 2018-1 plc said its proposal to amend the mortgage sale agreement was not passed by the required number of noteholders.

As announced Sept. 14, Trinidad was soliciting consents until noon ET on Sept. 24.

The notes covered by the solicitation were the issuer’s £238.23 million of class A mortgage-backed floating-rate notes due 2059, £21.38 million of class B mortgage-backed floating-rate notes due 2059, £16.79 million of class C mortgage-backed floating-rate notes due 2059, £12.21 million of class D mortgage-backed floating-rate notes due 2059, £7.63 million of class E mortgage-backed floating-rate notes due 2059, £2.74 million of class F mortgage-backed floating-rate notes due 2059, £2.32 million of class G mortgage-backed notes due 2059, £21.38 million of class X floating-rate notes due 2059, £4.13 million of class H mortgage-backed notes due 2059 and £11.15 million of class Z notes due 2059.

Specifically, the issuer was asking for the following amendments:

• Reducing the figure of 4.3% of the mortgage sale agreement to 3.7% and consequently allowing the beneficial title seller to sell additional Magellan mortgage loans that have a weighted average reversionary margin of at least 3.7% rather than 4.3% and that had a principal amount outstanding of about £17.5 million before Sept. 30. If this amendment were not made, then a significant portion of the pre-funding reserve will be used on the first interest payment date falling in October to redeem, pro rata, the rated notes on the first interest payment date; and

• Deleting the minimum three business days’ notice period for the beneficial title seller to deliver a sale notice for the mortgage loans being sold on or before Sept. 30.

The issuer had confirmed with S&P and DBRS that the proposed modification to the additional Magellan mortgage loan criteria to reduce the weighted average reversionary margin would not have a negative impact on the ratings assigned to the notes, according to a previous notice.

Citibank NA, London Branch (Exchange.gats@citi.com or +44 20 7508 3867) is the agent.

For questions, email capitalmarkets-uk@cscglobal.com.

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