Jerrold adds £240m to funding line

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Pound signSecured lender Jerrold Holdings, the group behind Bridging Finance, Blemain Finance and Cheshire Mortgages, has extended its funding line by £240m to £675m.

Jerrold, founded by businessman Henry Moser and backed by private equity firm Equistone, has an established securitisation programme.

This enables it to pool clients’ mortgages and sell the debt as bonds to investors which in this case are Royal Bank of Scotland, Lloyds Banking Group and French investment bank Natixis.

HSBC has now joined the facility which will run for a year longer. The revolving period – where repaid money can be borrowed again – will end in January 2018, while the non-revolving commitment will run until January 2019.

The securitisation programme, first issued in 2007, has also been given an investment grade rating by the ratings agenices Moody’s and DBRS. They have rated the facility AA2 and AA respectively.

Chief financial officer Gary Beckett said:

“The successful extension and expansion of our established securitisation facility is another significant milestone as the company broadens its range of financing options to capture the considerable growth opportunities we see in a recovering UK economy.

“Alongside our successful £200m capital markets bond issuance in 2013, the securitisation, which now benefits from investment grade ratings, is an important cornerstone of our financing as our lending to British businesses and home-owners approaches £600m per year.”