OneSavings Bank (OSB) is selling its entire economic interest in the Rochester Financing No.1 plc securitisation.
Morgan Stanley is to 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. This will result in a consideration of not less than £95 million in cash payable at completion to OSB.
OSB says the transaction is expected to generate an exceptional pre-tax gain of at least £25 million.
The gain on sale 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%.
Andy Golding, CEO of OneSavings Bank, said: “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.”