Prudential and Blackstone’s £11.8bn acquisition of UKAR and Bradford & Bingley loans

Slaughter and May is advising UK Asset Resolution Limited (UKAR) and Bradford & Bingley plc (B&B), working closely with the UKAR legal team, HM Treasury and Treasury Legal Advisers in relation to the disposal, by way of auction, of legacy buy-to-let mortgage assets originated by B&B and its subsidiary, Mortgage Express, to Prudential plc and to funds managed by Blackstone for a total consideration of £11.8bn.

Financial completion is expected within the next few weeks and will enable total loan repayments to HM Treasury of £11.8bn including £10.9bn of the £15.65bn Financial Services Compensation Scheme (FSCS) loan. The price achieved is at the upper end of expectations, delivers value for the taxpayer and compares favourably with the ‘fair value’ of the B&B loan book disclosed in B&B’s accounts last year. The fair value of the B&B loan book is less than its book value, reflecting the low interest rates payable on the loans.

A key consideration for this sale was the continued fair treatment of borrowers and there will be no changes to the terms and conditions of the buy to let loans involved in this transaction. Borrowers do not need to take any action at this time and all those impacted will be contacted in due course to explain the change in ownership.

Slaughter and May is advising UK Asset Resolution Limited and Bradford & Bingley on the deal with a Financing team led by Guy O’Keefe (partner) and Oliver Storey (partner, in picture), assisted by Charlie McGarel-Groves (associate), Harry Bacon (associate), Chris Armstrong (associate) and Steve Dempsey (associate) on Corporate matters are advising Craig Cleaver (partner), Kurt Ma (Associate), Carla Edney (associate) and Ed Steward (associate) on Tax law are acting Gareth Miles (partner), Ed Milliner (associate); on Financial regulation matters are advising Ben Kingsley (partner), Kilian McConnell (associate); and on Competition law are acting Isabel Taylor (partner) and Elena Prattent (associate).

 

Involved fees earner: Guy O’Keefe – Slaughter and May; Oliver Storey – Slaughter and May; Charlie McGarel-Groves – Slaughter and May; Harry Bacon – Slaughter and May; Chris Armstrong – Slaughter and May; Steve Dempsey – Slaughter and May; Craig Cleaver – Slaughter and May; Kurt Ma – Slaughter and May; Carla Edney – Slaughter and May; Edward Steward – Slaughter and May; Gareth Miles – Slaughter and May; Ed Milliner – Slaughter and May; Ben Kingsley – Slaughter and May; Kilian McConnell – Slaughter and May; Isabel Taylor – Slaughter and May; Elena Prattent – Slaughter and May;

Law Firms: Slaughter and May;

Clients: UK Asset Resolution;

 

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