Completion of Securitisation

RNS Number : 5279P

Paragon Group Of Companies PLC

25 October 2012

 



THE PARAGON GROUP OF COMPANIES PLC

25 October 2012

Completion of securitisation

The Paragon Group of Companies PLC ("Paragon"), through its subsidiary Paragon Mortgages (No.17) PLC ("PM17"), has today completed a £200 million securitisation transaction consisting exclusively of buy-to-let assets. 

PM17 comprises of £175 million of AAA rated notes at a margin of 135 basis points over three month LIBOR, £10.5 million of AA rated notes at a margin of 190 basis points over three month LIBOR, £10 million of A rated notes at a margin of 290 basis points over three month LIBOR.  £4.5 million of subordinated notes were retained by Paragon, which also invested £6 million in the First Loss Fund, which brings its total investment in PM17 to £10.5 million, or 5.25% of the issue amount.

Nigel Terrington, chief executive, said: "The pricing of our latest transaction reflects the strong credit profile of Paragon's buy-to-let assets and our experience as an issuer of high quality bonds in the mortgage backed securities market.  This was only the second public transaction of buy-to-let loans since the credit crunch and the first to issue A rated bonds since 2008." 

Paragon will be announcing its full-year results for the 12 months to 30 September 2012 on Tuesday 20 November 2012.

For further information, please contact:

Nigel Terrington, Chief Executive, 0207 786 8455

Nick Keen, Finance Director, 0121 712 2060

Paul Farrow, Fishburn Hedges, 0207 544 3040

 

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