Securitisation

Re-Launch of Gemgarto 2018-1- Negative Consent Process (GBP LIBOR to SONIA)

Monday, 8th February 2021: Kensington re-launched its negative consent process in relation to the Gemgarto 2018-1 deal for the purpose of proactively modifying the reference rate applicable to all the classes of outstanding notes from 3 month GBP LIBOR to Compounded Daily SONIA (i.e. Class A to F, Class X and Class Z notes) on the deal’s next IPD in March 2021. The first call date of Gemgarto 2018-1 falls on the IPD in September 2022 which is after the expected cessation of LIBOR’s availability at the end of 2021. The noteholders of the most senior class (i.e. the Class A Notes) then have 30 calendar days from the notification date to object to the proposal.

The key change relative to the previous process that was run last November is in relation to the post-step up margin adjustment which is now calculated by applying the ISDA 5 year/median methodology. This adjustment will be determined in accordance with the SBP0003m Bloomberg screen, and will be set at the point of pricing (due to be 11th March 2021). The pricing methodology for the pre step-up margins remains the same as the previous process.

For full details regarding the proposal to the class A noteholders (including the margin adjustment methodology) and the negative consent process, please refer to the public RNS announcement dated 8 February 2021 available on this link for Class A noteholders and this link for other class noteholders (the “RNS”). 

NO ACTION IS REQUIRED TO BE TAKEN BY ANY CLASS A NOTEHOLDER WHO DOES NOT WISH TO OBJECT TO THE BASE RATE MODIFICATION, THE SWAP RATE MODIFICATION OR THE PROPOSED AMENDMENTS (IN EACH CASE AS DEFINED IN THE RNS).

Expected Timetable

The RNS, the Deed of Amendment and Restatement (together with the Amended Documents) and the Replacement Interest Rate Swap Confirmation (in each case, as defined in the RNS) are available on the Kensington’s portal https://investors.kensingtonmortgages.co.uk/rmbs-reports/gemgarto/gemgarto_2018-1 (category ‘Other’).